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Resin Producers Continue Push for PE Increases through January.
12/05/2022
Polyethylene producers were able to keep contract prices from slipping for a second straight month with November all but finalized at a rollover, but at least two major producers are continuing the push for price increases in December.
In a letter to customers today, LyondellBasell said it would roll its November increase of $.05/lb to December and its fulfillment of future orders or subject to its acceptance of each order and ability to supply product.
Nova Chemicals notified customers last week that it revised its proposed November increase of $.07/lb to a December increase of $.05/lb, which applies to all PE grades.
The company also announced a new price increase of $.08/lb for January and said it has reduced PE operating rates and inventory in response to the prevailing market conditions and economics.
No other companies have formally announced an increase for January as of yet.
Nova's reduction in both operating rates and high inventory levels mirrors other resin producer actions this quarter, as they match weak demand amid new capacity additions. LyondellBasell said in October it expected to run its Olefins and Polyolefins (O&P) Americas assets at approximately 75% in Q4. Dow had also initiated a global production cut of 15% as far back as August.
- By The Plastics Exchange.
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