Spot US HDPE blowmolding export price hits five-month high on producer push

New York — The spot US high density polyethylene blowmolding export price rose to the highest level in over five months on July 16, based on producers pushing higher pricing.

S&P Global Platts last assessed HDPE blowmolding $33/mt higher day on day at $815-$837/mt (37-38 cents/lb) FAS Houston, with rail car pricing discussed at 34-35 cents/lb.

The FAS assessment includes an additional 3 cents/lb to cover packaging and transportation costs.

The previous high for HDPE blowmolding was assessed on February 7, 2020 at $816-$838/mt (37-38 cents/lb) FAS Houston.

The assessment has increased $121, or about 17.2% higher since January 2, 2020 and is down $23, or 2.7% lower on the year, Platts data showed.

This week, a list of producers, including Formosa Plastics USA , ExxonMobil Chemical, Dow Chemical and Chevron Phillips Chemical and LyondellBasell's subsidiary, Equistar Chemicals, have announced 5 cent/lb increases for all their PE resins sold in the US.

All of the companies said the new cost will be in addition to previously announced price increases for all their PE resins.

In general, many market sources are uncertain if the higher pricing will work for exports.

Some market participants believe that higher pricing won't be tradable as the overseas market is competitive as demand is slowly reappearing.

One trader source said the higher pricing will "hit a brick wall" soon as they expect the exports market to not follow the same recovery pace as domestic markets.

"We have to see a corresponding increase in interest and demand in the export markets, but with summer holiday approaching fast and the ongoing COVID-19 lockdown I think this will be difficult," a separate market source said.