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August Increase Announced for US HDPE
July 19, 2021

As July Polyethylene (PE) producers seek to implement an eighth consecutive price increase of $.03-$.05/lb for July, one US producer has already announced its intention to increase prices again in August.

Dow said in a letter to customers on Friday it would increase the price for all High Density Polyethylene (PE) resins sold in the US by $0.05/lb, effective August 1 or as contracts allow. The company said it would also be implementing $0.05/lb of its previously announced $0.07/lb price increase for all HDPE sold in the US, and $0.05/lb for all Linear Low and Low Density Polyethylene resins sold in the US, effective July 1.

We have not yet seen other producers nominate an August PE increase, but expect others to follow. The announcement comes after North American PE producers successfully implemented June contract price increases of $.05/lb for all major product grades. PE contract prices have persistently increased 11 of the past 13 months, rising some $.60/lb along the way, only pausing during October and November, before resuming its extended rally driven by limited supply availability, strong buyer demand and higher spot prices.

Demand remains strong, while inventory has been building back up in recent months, but availability remains tight across the resin market. One PE supplier lifted a Force Majeures (FM) last week, but at least four other PE suppliers still have FM's in place.

PE contracts are typically settled towards the end of the month.

By Brian Balboa for The Plastics Exchange.

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