Formosa Plastics has postponed a 5 cents/lb December polyethylene increase for US buyers, multiple market sources said Thursday.
Formosa was one of multiple major producers seeking previously unimplemented increases for December. Domestic contracts settled flat in October and November, and there has been strong sentiment for the past month that prices likely would be flat through the end of the year.
Several buyer sources said Formosa agreed late Wednesday to push the increase back to January. A company source confirmed Thursday afternoon that the increased had been delayed.
Market sources have been mixed on potential increases going through in December or January, with some saying stronger demand and inventory drawdowns support higher prices, while others have noted that weaker oil and declining global prices could keep downward pressure on the US market.
Formosa Plastics has postponed a 5 cents/lb December polyethylene increase for US buyers, multiple market sources said Thursday.
Formosa was one of multiple major producers seeking previously unimplemented increases for December. Domestic contracts settled flat in October and November, and there has been strong sentiment for the past month that prices likely would be flat through the end of the year.
Several buyer sources said Formosa agreed late Wednesday to push the increase back to January. A company source confirmed Thursday afternoon that the increased had been delayed.
Market sources have been mixed on potential increases going through in December or January, with some saying stronger demand and inventory drawdowns support higher prices, while others have noted that weaker oil and declining global prices could keep downward pressure on the US market.
