US polyethylene producers have begun to issue 6 cents/lb price increases effective September 1, according to several company sources Friday.
LyondellBasell, Formosa Plastics Co, and Dow were all on board with the 6 cents/lb increase and others producers were expected to follow.
The September increase is on top of a 5 cents/lb price initiative that producers are attempting for August.
"We have a saying around here that the last increase never goes in," a source said regarding the latest price announcement.
The September increase was more a support for the August price hike than a true price initiative for September, the source said.
June and July prices were still being finalized as producers were heard to be retroactively revising June's contracts. There was talk that over June and July LDPE and LLDPE would be down as much as 9 cents/lb.
Participants expected prices to rebound in August due to the higher Asian market and firm spot ethylene price.
The ethylene and monomer derivative market was expected to tighten from September onwards as there are a number of planned steam cracker turnarounds in the US Gulf. This, coupled with hurricane season planning, meant buyers along the chain would build inventory in August and keep the market tight to support price increases.
