US polyethylene contracts for June have settled down at least 2-4 cents/lb ($44-$88/mt) depending on the grade, several sources said Monday.
"Producers stuck close to the ExxonMobil letter," a source said.
ExxonMobil sent a letter to its customers June 24 announcing it would decrease the June price for its LDPE and LLDPE resins 4 cents/lb, while cutting its HDPE resins by 2 cents/lb.
There had been talk that the letter merely set the tone for negotiations and buyers would be able to negotiate more of a decrease. While there was unconfirmed talk of further concessions, several buyers said they had only seen decreases by the amount nominated by ExxonMobil.
The decrease in PE was 0.25-2.25 cents/lb more than the decrease in the June ethylene contract that fell 1.75 cents/lb to 56.75 cents/lb.
The fall in spot PE prices has been more dramatic than for contract prices.
The LLDPE spot export price decreased 8 cents/lb over June and was assessed July 1 by Platts at 59-60 cents/lb FAS Houston. Spot LDPE over the same period was down 10.5 cents/lb at 68-69 cents/lb.
For July, buyers and sellers held widely differing views on how the market would evolve. Producers have a 5 cents/lb price increase on the table, while buyers are looking for another round of decreases.
