Spot US HDPE blowmolding reaches highest pricing in more than six years

New York — The spot US high-density polyethylene blowmolding export price increased the week Feb. 3 to the highest pricing in more than six years, based on limited production and supply constraints, sources have said.

US HDPE blowmolding spot export pricing was assessed at $1,433-$1,455/mt (65-66 cents/lb) FAS Houston, up $154 week on week, with railcar pricing talked at 62-63 cents/lb by sources.

The FAS assessment includes an additional 3 cents/lb to cover packaging and transportation costs.

The previous high for US HDPE blowmolding was Dec. 11, 2014, with pricing assessed at the $1,455/mt mid-point.

The US HDPE blowmolding assessment has risen about 84.4%, or $661, from the year-ago date, when it was assessed at $783/mt mid-point (35.5 cents/lb) FAS Houston.

US HDPE blowmolding has been increasing since Dec. 7, 2020, when the grade was assessed at $981/mt. The grade has since increased $463/mt, or 47.2%, to $1,444/mt mid-point.

Sources believe that pricing has increased because producers were pushing higher pricing as well as limited availability for the grade.

In general, US HDPE exports have been tight and there have been few to no offers in the marketplace right now.

Pricing is expected to continue increasing in February because of continued supply constraints, sources say.