US polypropylene producer Phillips Sumika is seeking a 10-cent/lb hike on all Marlex homo- and random co-polymer grades for September 1, the company said in a letter to customers obtained by Platts.
The increase would be in addition to any projected increases for September, the letter said.
"Significant additional price increases should be anticipated," the letter said.
One market source said he believed the move was likely part of a strategy by Phillips Sumika to improve margins on products from one of its lower-yielding lines.
Another polypropylene source not affiliated with Phillips Sumika believed there might be more to the story.
"The whole thing is little weird," the source said. "We're going to have to wait and see what they plan to do."
Market sources in recent days have pegged spot generic-prime PP in a wide range in the high 80s to low 90s cents/lb.
A contract settlement for August had not been reached, but word from the propylene market was that feedstock PGP could be settling flat to July at 78 cents/lb, which would likely leave PP homo injection flat around the 87- to 89-cent/lb range.
