Petrochemical producers announce US polyethylene price increases for April

Dow Chemical will increase the price for all its polyethylene resins sold in the US by 9 cent/lb as of April 1, the company said March 9.

The rise will be in addition to its previously announced price increase of 7 cent/lb as of March 1, which will be implemented as well, the company said in a letter to customers seen by S&P Global Platts.

Dow was unavailable for immediate comment on the letter.

Equistar Chemicals, meanwhile, will increase the price for all its polyethylene resins sold in the US by 6 cents/lb as of April 1, the company has told its customers.

"In this continued dynamic environment, PE supply remains significantly limited across the industry," the LyondellBasell's subsidiary said in a letter, dated March 5.

The rise will also be in addition the Equistar's previously implemented price increase of 7 cent/lb on March 1.

Separately, Platts assessed domestic PE contracts up 7 cents on March 3 as contracts settled higher for February for all domestic PE, based on limited supply and strong demand in an already tight market, a source said.

"In my 20 years in PE, this is the tightest market we've seen," the source said.

In export markets, US spot PE pricing was assessed flat on the day March 8 after Platts assessed low-density PE at $1,830-$1,852/mt FAS Houston, linear low-density PE butene at $1,654-$1,676/mt FAS Houston and high density PE blowmolding at $1,642-$1,664/mt FAS Houston.