Petrochemical producers announce polyethylene price increases for June

ExxonMobil and LyondellBasell's subsidiary, Equistar Chemicals, announced price increases for polyethylene products sold in North America, the companies said.

Both companies said the increases will go into effect June 1, the companies said in letters to customers May 19 seen by S&P Global Platts.

ExxonMobil will be implementing a price increase of 5 cents/lb for all low-density PE and linear-low-density PE products and a 7 cents/lb increase for its high-density PE resins, the company said.

Meanwhile, Equistar Chemicals will implement a 7 cents/lb price increase on all its grades of PE products in addition to any previously announced price hikes, including the 5 cents/lb increase that was implemented May 1, it said.

Neither company was available for immediate comment on the proposed hike May 20.

Prior to the announcements, Dow Chemical and Chevron Phillips Chemical also announced price hikes for their respective PE products May 17 and May 18, respectively.

Chevron Phillips said it will increase pricing for its PE products by 7 cents/lb, while Dow Chemical will increase its PE resins by 5 cents/lb, effective June 1.

In general, the "market situation is really confusing now," one source said.

While sources previously expected pricing to soften in June, some don't believe it will trend downward with the recent new round of June increases that producers announced.

In export markets, US spot PE pricing was assessed flat by Platts day on day May 20 with LDPE at $1,984-$2,006/mt, LLDPE butene at $1,621-$1,643/mt, and HDPE blowmolding at $1,775-$1,797/mt, all FAS Houston basis.