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July Polyethylene Contract Price Increases Announced
June 16, 2021

US June Polyethylene contracts have not been settled yet, but two producers have already announced their intention to increase prices again in July. Producers nominated price increases for June within a range of $.05-$.07/lb, driven by solid demand and limited supply availability.

In a letter to its customers this week, Dow said it will increase the price for all Polyethylene resins sold in the US by $.05/lb effective July 1, or as contracts allow. The company also said it was implementing its previously announced price increase of $.07/lb for all High Density Polyethylene (HDPE) resins, and $.05/lb for all Linear Low (LLDPE) and Low Density Polyethylene (LDPE) resins sold in the US, effective June 1.

Meanwhile, INEOS also sent a letter to its customers announcing a price increase of $.03/lb for HDPE, effective July 1. The July increase was in addition to its previously announced price increase of $.05/lb, effective June 1.

June PE contracts are typically settled towards the end of the month. Buyer reaction to the nominated July increases has been thin so far, but rising spot prices have lent support to stronger contract prices throughout the year. Some PE producers are still under force majeure conditions and/or have contract allocations in place.

The sentiment from some market participants is that more production is returning, and inventory is starting to build back up. Although most PE grades were trading over $1.00/lb on the spot market, prices held steady last week, which was the first time in a while that prices have not risen across the PE market.

By Brian Balboa for The Plastics Exchange.

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