Two LyondellBasell subsidiaries will seek a 3 cents/lb ($66/mt) increase in their North American polypropylene prices effective April 1 on top of any change in the monomer contract price for the month, the company said Wednesday in a letter to customers.
LyondellBasell subsidiaries Equistar Chemicals and Mexico-based Basell Poliolefinas also plan to adjust their April PP pricing in line with any change in the polymer-grade propylene contract settlement for the month.
“Specialty grades may be subject to a price increase of a different amount,” the company added.
LyondellBasell is the second major North American producer to announce such an increase for April this week. On Monday, Braskem Americas was to first to notify customers of April increases, announcing it would increase its polypropylene prices by 3 cents/lb ($66/mt), in addition to any change in feedstock PGP prices.
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US producers have been seeking increases throughout 2015 and started 2016 with a 6 cents/lb attempt to further expand their margins.
Market participants have cited supply tightness as the main reason for the increases. But despite the supply shortage, any increases in contract price nominations are expected to face resistance from buyers, multiple sources said, as significant import volumes are set to hit North American markets later in the month and in the second quarter.
