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Dow Seeking Smaller Increase for February Polyethylene Contracts
02/16/2022
Although February Polyethylene (PE) contract settlements have not been settled yet, one major resin producer is trying to get a smaller increase than originally announced.
In a letter to customers this week, Dow Chemical and Dow Chemical Canada said they would be implementing $.02/lb of a previously announced $0.05/lb increase on all HDPE and LDPE resins, and $.04/lb of a previously announced $.07/lb price increase for all LLDPE resins, sold in the US and Canada effective February 1. Other major resin producers also have price increases on the table for February still.
Westlake Chemical and ExxonMobil both issued $.04/lb price increases on PE, effective February 1, while LyondellBasell issued a $.05/lb price increase on all grades of HDPE and LDPE and a $.07/lb price increase on all grades of LLDPE sold in North America, also effective February 1. The larger price increase on LLDPE came amid tighter supply and availability, especially for film grade resins which have been impacted due to tight availability for slip additives following a fire at PMC Biogenix's Memphis, TN facility in mid-January.
The February PE increases come after January contracts settled flat with producers failing to get their proposed increases at an average of $.04/lb.
Dow added that it is looking to roll a price initiative to March with a $.04/lb increase for all PE resins sold in the US and Canada by $.04/lb effective March 1. No other resin producers have issued price announcements for March yet.
By Brian Balboa for The Plastics Exchange.
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