Formosa Plastics USA to hike polypropylene prices by 5 cents/lb in May: letter

Houston — Formosa Plastics USA will increase its prices of polypropylene products by 5 cent/lb on May 1, the company said in a letter to customers seen by S&P Global Platts April 27.

"Orders for all products will be subject to our ability to supply, based upon normal operations of our facilities," the company said in the letter.

The increase is in addition to any change in monomer pricing, Formosa said.

The company was unavailable for comment on the announced increase.

S&P Global Platts assessed export homopolymer injection-grade polypropylene unchanged on the day April 26 at $2,249-$2,271/mt FAS Houston basis.

Domestic PP pricing was assessed flat on the week April 21 at 87.5-88.5 cents/lb delivered rail car basis for homopolymer injection grades. Pricing includes a market-accepted 18-cent premium over settled feedstock polymer-grade propylene contracts. Domestic pricing was also stable on the week at 89.5-90.5 cents/lb delivered rail car basis for homopolymer fiber, which maintained a 20-cent premium over the PGP contract.