US polyethylene contract prices finally settled for December up 5 cents/lb, or $110/mt, industry sources said Monday.
Settlement of December's PE contracts was a prolonged affair as producers held firm on the increase while buyers were holding out for a rollover. Typically prices for a given month are concluded at the end of the month.
"I took the increase, but I'm not happy about it," a blow molding converter said.
Producers were able to reduce inventory from November through the end of the year that tightened supply and made the January prices a "take it or leave it" proposition, sellers said.
The increase put mid-size buyers of LDPE in the mid-70s cents/lb delivered, HDPE blow molding 68 cents/lb delivered, and LLDPE at 68 cents/lb delivered. Larger volume buyers can be as much as 5 cents/lb lower, industry sources said.
For January, producers have issued another 5 cents/lb price increase. While it was too early to say how successful this would be, a higher spot ethylene price supported producers efforts.
Spot ethylene was hovering around 57 cents/lb FD US Gulf Coast Monday, up 6.50 cents/lb from December 19 ahead of a busy turnaround season in the region.
