Chevron Phillips plans to raise US polyethylene prices by 6 cents/lb in March, in addition to its increase currently sought for February, the company said in a letter to customers seen Friday by S&P Global Platts.
Chevron Phillips joins ExxonMobil Chemical and Dow Chemical who informed customers this week and Equistar Chemicals last week in seeking higher March prices. Equistar told customers last week that it was seeking a second increase on top of the 5 cents/lb producers are attempting to implement for February.
The letter to customers, sent Thursday, did not provide a reason for the increase.
Strong domestic demand to open 2017, as well as planned maintenance work and limited supply as factors playing into additional price hikes, sources said.
February domestic contracts were assessed Wednesday at 61-62 cents/lb ($1,345-$1,367/mt) delivered rail car basis for blowmolding, 61-62 cents/lb ($1,345-$1,367/mt) for injection and 64-65 cents/lb ($1,411-$1,433/mt) for HMW film. Linear low-density butene polyethylene contracts were assessed at 59-60 cents/lb ($1,301-$1,323/mt) for delivered rail cars; and low-density polyethylene contracts were assessed at 71-72 cents/lb ($1,565-$1,587/mt) for delivered rail cars.
Market sources have said the 5-cent increase will likely go through in February, pointing to strong sales in January amid restocking.
