ExxonMobil Chemical restores USGC production, raises polyethylene prices for April

ExxonMobil Chemical Co. has restored all of its US Gulf Coast production capabilities, the company said.

"We continue to recover from raw material constraints and low inventory, which may impact specific product availability and delivery timing," the company said in a letter to customers March 22 that was seen by S&P Global Platts.

EMCC plants include locations in Baton Rouge, Louisiana, Beaumont, Texas, and Mont Belvieu, Texas.

The company was not available for immediate comment on the letter.

Also, EMCC said in the letter it will raise prices for its high density polyethylene, low density polyethylene and linear low density polyethylene effective April 1. It plans an increase of 7 cents/lb for all its HDPE resins and a 9 cent/lb increase for all its LDPE and LLDPE resins.

The increases are in addition to a previously announced price hike of 7 cents/lb that was effective March 1.

Other petrochemical producers, including Dow Chemical, Formosa Plastics USA, Bayport Polymers and LyondellBasell subsidiary Equistar Chemical, also announced 9 cents/lb price increases, effective April 1, in letters to customers.

Those are in addition to previous increases, each company said.

Platts assessed domestic PE contracts unchanged week on week on March 17. That was after the February contract settled 7 cents/lb higher on March 3 for all domestic PE contracts, based on limited supply and high demand in an already tight market, a source said.

In export markets, US spot PE pricing was assessed unchanged on the day March 23 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.