US polyethylene contracts for HDPE film, LDPE and LLDPE rose in March, market sources said Tuesday.
Producers initially planned to increase prices for those grades in February, but delayed the hikes for film-grade PE resins to match competing offers after Nova Chemicals and Formosa Plastics moved their planned increases to March.
Sources also said Nova and Formosa were able to raise prices for all grades in March.
HDPE blowmolding and injection grade prices were flat in March after moving up 4 cents/lb in February.
With news of the March settlements, US domestic PE contracts were assessed at 72-73 cents/lb delivered railcar for HDPE blowmolding and 72-73 cents/lb for HDPE injection. HDPE film contracts were assessed at 75-76 cents/lb delivered railcar, up 4 cents/lb from February.
LDPE contracts were assessed at 83-84 cents/lb for delivered railcar, and LLDPE domestic contracts were assessed at 70-71 cents/lb for delivered railcar, both up 4 cents/lb from February.
US PE supplies have been heard tight, with sources saying the trend could continue throughout much of 2013. In addition, several turnarounds at feedstock ethylene crackers have been scheduled for April and May, which could put further pressure on feedstock costs in the coming months.
