Polyethylene production in the US and Canada was at the highest level in eight months in November as the impact of new startups and post-Hurricane Harvey restarts were felt in the market, according to preliminary data released Wednesday by the American Chemistry Council.
Total polyethylene production for November topped 3.55 billion lb, up from almost 3.28 billion lb in October and the most since producers made more than 3.62 billion lb of pellets in March. Total sales were at almost 3.5 billion lb, down 1.96% from October's total of more than 3.4 billion lb.
Overall producer stocks increased by 206.4 million lb due to a build in high density polyethylene grades. HDPE stocks rose by 236.26 million lb, while low density polyethylene sales outpaced production by almost 23 million lb and linear low density sales were almost 7 million lb above production levels.
Domestic sales were at almost 2.66 billion lb, down from 2.77 billion lb in October and slightly below the 2017 monthly average of almost 2.68 billion lb.
The overall build was the first since July, adding fuel to talk of potential contract price decreases in December. November contracts rolled over after a combined 10 cents/lb was added over August, September and October.
Exports, meanwhile, were at the highest mark since July, the month before Harvey hit the Texas Coast causing massive production disruptions, some of which are still being worked out. Total exports were at almost 692 million lb, accounting for just more than 20% of total sales.
By grade, HDPE production was at more than 1.77 billion lb, with sales at 1.535 billion lb as almost 1.3 billion lb went to domestic customers while more than 242 million lb went to traders and buyers outside the US and Canada. LLDPE production was at more than 1.26 billion lb, with sales topping 1.27 billion, including 957.3 million lb for domestic buyers and 314.3 million lb designated for export. LDPE production was at 519.4 million lb, with sales of almost 542.4 million lb, including 407 million for the domestic market and 135.3 million lb for export.
The preliminary data showed just more than 79.3% of total sales going to the domestic market, the lowest percentage since July when domestic buyers consumed 78.9% of all PE sold.
