Dow Chemical and Chevron Phillips Chemical plan to implement 5 cent/lb increases for their polyethylene resins sold in the US as of Aug. 1, the companies have told customers in respective July 14 and July 15 letters seen by S&P Global Platts.
The new cost will be in addition to the previously announced price increases of 5 cents/lb for all PE resins sold in the US, effective July 1.
The companies were not immediately available for comment on the proposed increase.
Market participants have acknowledged a price increase push from producers over the past few months as producers try to recover from the coronavirus pandemic, which pushed pricing to record lows.
Although Dow and Chevron Phillips have announced higher pricing for August, market sources are uncertain if these prices can succeed.
"I think we are going to hit a brick wall pretty soon," one trader said.
Platts assessed July 15 US spot export pricing for low-density polyethylene $11 higher day on day at $959-$981/mt FAS Houston, linear low-density polyethylene unchanged on the day at $760-$782/mt FAS Houston and high-density polyethylene blowmolding flat day on day at $782-$804/mt FAS Houston.
