Total, Formosa Plastics, Equistar Chemicals hiking US polypropylene by 4 cents/lb in December

New York — Total Petrochemicals & Refining, Formosa Plastics and Equistar Chemicals will increase their prices of polypropylene products by 4 cent/lb on Dec. 1, the companies said in letters to customers seen by S&P Global Platts Nov. 19.

The increase is in addition to any change in monomer pricing, Total said Nov. 18 Formosa Plastics said the same day that the increase is in addition to any change in polymer grade propylene contract pricing.

However, the specialty grades may be subject to a price increase of a different amount, Equistar Chemicals said Nov. 17.

All three companies were unavailable for comment Nov. 19 on the announced increases.

The three producers also separately reconfirmed the increase is in addition to their previously announced 4 cents/lb increases, effective Nov. 1, for all polypropylene products.

The proposed increase comes amid a time where there's no availability for export in the polypropylene market, sources have said.

"Polypropylene is tough, it's still firm and we aren't getting anything from the US producers," one trader source said.

In general, market participants have seen little to no availability for exports and traders have said pricing is unworkable.

S&P Global Platts assessed export homopolymer injection-grade polypropylene stable week on week at Nov. 18 at $1,268/mt FAS Houston.

Domestic PP pricing was assessed flat on the week at 54.5 cents/lb delivered rail car basis for homopolymer injection grades. Pricing includes a market-accepted 18-cent premium over settled October feedstock PGP contracts at 36.5 cents/lb. Domestic pricing was also stable on the week at 56.5 cents/lb delivered rail car basis for homopolymer fiber, which maintained a 20-cent premium over the PGP contract.