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North American Resin Suppliers Seek Additional Increases for September PE
August 20, 2021

After a contentious July contract settlement, and with August price initiatives still on the table, North American Polyethylene (PE) producers announced another round of September price increases this week.

At least three North American suppliers announced prices increases of $.05/lb for all PE resins, effective September 1.

July PE contracts were confirmed at a $.05/lb increase earlier this month and average increases of $.05/lb were announced for August. One producer issued a larger August price increase for High-Density Polyethylene (HDPE) at $.07/lb, which has seen tight availability for much of this year.

PE contract prices have increased for eight consecutive months, and persistently increased 12 of the past 13 months, rising some $.65/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 continued to build back up in recent months. The increase in inventory and comes as more resin suppliers are lifting Force Majeures (FM) and coming off of sales allocation programs following Winter Storm Uri back in February, which severely impacted the US Gulf petrochemical and polymer logistics and supply chain.

By Brian Balboa for The Plastics Exchange.

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