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Spot US HDPE blowmolding pricing hits highest level in almost 13 months

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Spot US HDPE blowmolding pricing hits highest level in almost 13 months


Pricing increased 22% since January

HDPE blowmolding previous high July 11, 2019

New York — The spot US high density polyethylene blowmolding export price rose to the highest level in about 13 months on Aug. 4, based on producers pushing higher pricing and positive market sentiment.

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HDPE blowmolding was assessed $22 higher day on day at $849-$871/mt (38.5-39.5 cents/lb) FAS Houston, with rail car pricing discussed at 36 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 July 11, 2019, at the same level.

The assessment has increased $155, or 22% since Jan. 2 and is up $22, or 2.6% on the year, Platts data showed.

In general, US producers have implemented higher domestic PE pricing for the past few months, which has also affected the export market. While the pricing increases, some sources have said producers will continue to try and push prices higher.

Additionally, there is a strong domestic demand for the grade causing a lack of spot availability in the export market, which is moving spot prices up even more, one trader source said.

Last week, domestic contracts increased 5 cents on the week July 29 and assessed HDPE blowmolding at 53-54 cents/lb ($1234.58-$1256.58/mt), HDPE injection at 56-57 cents/lb ($1300.71-$1322.71/mt) and HDPE film at 58-59 cents/lb ($1344.81-$1366.81/mt), as producers push for higher pricing in August, a source said.