Dow Chemical plans to raise US polyethylene prices by 5 cents/lb in March, the company said Friday.
The increase would take affect on March 15 and would cover all grades of polyethylene resin, Dow said in letter to customers obtained by Platts.
Some market sources have said a spike in domestic demand is expected during the first quarter as buyers take advantage of lower prices to restock inventories. Other market sources contend that any attempts by producers to raise prices right now could be an attempt to stop a price slide.
US polyethylene contracts have fallen 11 cents/lb since November, and another decrease is expected for February, market sources said. One producer has dropped prices by 5 cents/lb, and there are strong indications that others could follow suit, particularly after preliminary data from the American Chemistry Council this week showed additional inventory builds for producers in January. It would mark six consecutive months of inventory growth, according to the ACC data.
With the market wide implementation of a 4 cents/lb drop in January, US PE contracts were at their lowest level since September 2013, according to Platts data.
January contracts were assessed for low density polyethylene at 84-85 cents/lb ($1,852-1,874/mt) delivered-rail car basis and for linear-low density polyethylene contracts at 71-72 cents/lb ($1,565-1,587/mt) for delivered rail cars.
High density polyethylene contracts were assessed for blowmolding at 75-76 cents/lb ($1,653-1,675/mt) delivered-rail car basis; at 75-76 cents/lb ($1,653-1,675/mt) for injection grade; and at 78-79 cents/lb ($1,720-1,742/mt) for high-molecular weight film.
– Platts.com
