US PE Sentiment Mixed on Weak Demand, Rising Energy Prices
HOUSTON (ICIS news)--US polyethylene (PE) buyers on Friday said increasing feedstock supply and soft demand would undercut prices next month, while producers said firming energy prices would provide support.
PE prices in the US were flat or slightly down this month as resin demand showed little improvement from February and feedstock supply increased with several cracker restarts, buyers said.
Large-volume buyers said they had not yet seen any decrease in March, but they expected PE to drop in April.
Producers had proposed a 5 cent/lb ($110/tonne or €80/tonne) increase for March, but buyers and sellers said the increase was postponed at least until April.
A producer said it had not lowered prices domestically, preferring instead to slow down operations and export to a resurgent market in Asia.
The source was not seeing lower priced offers from competitors either.
A high density PE (HDPE) blow moulding converter said distributors were working harder to push inventory out of warehouses, a signal that prices could be turning around after increasing in January and February.
HDPE was being offered at 36-40 cents/lb DEL (delivered) for spot domestic railcars, several mid- to large-volume buyers said.
Bagged HDPE blow moulding for export was at 35-37 cents/lb FOB (free on board) US Gulf, according to sellers and traders, about 2 cents lower compared with the previous week.
Major US PE producers include Dow Chemical, ExxonMobil, Formosa, Chevron Phillips Chemical, Total and LyondellBasell.
PE prices in the US were flat or slightly down this month as resin demand showed little improvement from February and feedstock supply increased with several cracker restarts, buyers said.
Large-volume buyers said they had not yet seen any decrease in March, but they expected PE to drop in April.
Producers had proposed a 5 cent/lb ($110/tonne or €80/tonne) increase for March, but buyers and sellers said the increase was postponed at least until April.
A producer said it had not lowered prices domestically, preferring instead to slow down operations and export to a resurgent market in Asia.
The source was not seeing lower priced offers from competitors either.
A high density PE (HDPE) blow moulding converter said distributors were working harder to push inventory out of warehouses, a signal that prices could be turning around after increasing in January and February.
HDPE was being offered at 36-40 cents/lb DEL (delivered) for spot domestic railcars, several mid- to large-volume buyers said.
Bagged HDPE blow moulding for export was at 35-37 cents/lb FOB (free on board) US Gulf, according to sellers and traders, about 2 cents lower compared with the previous week.
Major US PE producers include Dow Chemical, ExxonMobil, Formosa, Chevron Phillips Chemical, Total and LyondellBasell.
quoted from: www.ICIS.com
