ExxonMobil moves US April PE 3 cent/lb increase initiative to May

20 April 2017 20:47 Source:ICIS News

HOUSTON (ICIS)--ExxonMobil has pushed its proposed US polyethylene (PE) increase of 3 cents/lb for April to May, according to a letter sent to customers on Thursday.

The letter, dated 20 April, did not give a reason why the hike was being delayed, although there was doubt in the market about the chances of implementation.

ExxonMobil’s letter said it was revising the effective date of the previously scheduled hike to 1 May for all high density (HDPE), low density (LDPE) and linear low (LLDPE) resins sold by the company.

A number of PE producers, including ExxonMobil, separately issued contract price revisions in late March calling for 3 cent/lb ($66/tonne) increases in April.

“I think they’re waiting for May to see if a better excuse comes along then,” a buyer said of the move by ExxonMobil.

Major US PE producers include Chevron Phillips Chemical, Dow Chemical, ExxonMobil, Formosa Plastics, LyondellBasell, NOVA Chemicals, Total and Westlake.

By Lane Kelley