Chevron Phillips Chemical Thursday joined the growing list of US polyethylene producers planning to raise resin prices in September.
The company said it intends to raise prices for all grades of polyethylene by 3 cents/lb effective September 1, according to a letter to customers obtained by Platts.
Over the past week, other US producers, including ExxonMobil Chemical, Dow Chemical, Equistar Chemicals, and Ineos Olefins and Polymers, also announced increases of 3-4 cents/lb for September.
US polyethylene contracts have been flat since a 4 cents/lb increase in February.
Platts assessed July high density polyethylene contracts for blow molding at 83-84 cents/lb ($1,830-1,852/mt) delivered-railcar basis; 83-84 cents/lb ($1,830-1,852/mt) for injection; and 86-87 cents/lb ($1,896-1,918/mt) for high molecular weight film. Linear low density contracts were assessed at 79-80 cents/lb ($1,742-1,764/mt) for delivered railcar, and low density polyethylene domestic contracts were assessed at 92-93 cents/lb ($2,028-2,050/mt) delivered-railcar basis.
Sources have described the US polyethylene market as tight, pointing in part to a number of feedstock and production-related issues. Feedstock prices have also moved higher, with ethylene contract prices for July fully settled at a 1.75 cents/lb increase, sources said this week.
Spot ethylene was assessed Thursday at 64 cents/lb FD USG on a 3-30 day basis and reached a 27-month high of 69.75-70.25 cents/lb FD USG on Monday.
– Platts.com
