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Nova Chemicals pushes back US PE increase to May

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Nova Chemicals pushes back US PE increase to May

Houston — Nova Chemicals on Friday pushed its previously announced 3 cents/lb polyethylene increase to May for all grades of resin, the company told customers in a letter obtained by S&P Global Platts.

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The move comes as market sources have pointed to likely stable pricing in for April for US contracts, with growing chatter around potential decreases amid rising stocks and weaker feedstock pricing. Producers initially nominated 3-cent increase in March, with those eventually shifting to April.

Platts on Wednesday assessed April polyethylene contract prices flat from March.

Domestic high-density polyethylene contract prices were assessed at 69.5-70.5 cents/lb ($1,532-$1,554/mt) delivered rail-car basis for blowmolding, 69.5-70.5 cents/lb ($1,532-$1,554/mt) for injection, and 72.5-73.5 cents/lb ($1,598-$1,620/mt) for film. Linear low-density butene contracts were assessed at 67.5-68.5 ($1,488-$1,510/mt) delivered rail-car basis, while low-density contracts were assessed at 79.5-80.5 ($1,753-$1,775/mt) delivered rail car basis.

Sources have indicated some one-off decreases could be in the works for larger buyers in April, but not at a level which could be considered marketwide.

--Chris Ferrell, christopher.ferrell@spglobal.com

--Edited by Richard Rubin, richard.rubin@spglobal.com