Nova Chemical on Friday revised its proposed United States polyethylene price increase, notifying consumers it currently plans to increase prices by 3 cents/lb in both March and April, the firm claimed in a letter gotten by S&P Global Platts.
The split increase replaces a formerly revealed 6-cent March hike, and also begins the heels of a similar statement by ExxonMobil Chemical earlier in the day.
The rises from both business relate to all grades of polyethylene, according to letters to consumers.
Neither letter offered a factor for the modification in the schedule of the increase, however market sentiment has actually been mixed on the probability of US producers successfully increasing costs by the full 6 cents/lb in March, especially on the heels of a 5-cent increase in February.
Multiple sources showed over the past week that the potential customers for a full, and even partial, increase had appeared to pick up some momentum. A 3-cent hike for March could have a much better opportunity of being carried out, resources claimed.
Market resources claimed they expected other producers to eventually follow suit.
Manufacturer sources have actually indicated solid residential demand as well as three straight months of declining PE stocks as variables supporting a greater rate. Area availability has been restricted for both domestic and export customers throughout March, resources have actually claimed.
irooildrilling recommending a rollover was warranted have mentioned numerous elements versus a boost, including declines in global rates as well as a dip in feedstock ethylene pricing at the beginning of the week.
March domestic agreement rates were last analyzed Wednesday at 61-62 cents/lb ($1,345-$1,367/ mt) supplied rail automobile basis for blowmolding PE, 61-62 cents/lb ($1,345-$1,367/ mt) for shot PE, and also 64-65 cents/lb ($1,411-$1,433/ mt) for HMW movie.
Linear low-density butene polyethylene agreement costs were evaluated at 59-60 cents/lb ($1,301-$1,323/ mt) for provided rail vehicles, and low-density polyethylene agreement prices were evaluated at 71-72 cents/lb ($1,565-$1,587/ mt) for delivered rail vehicles.