LyondellBasell will increase March polyethylene (PE) prices in North America by 7 cents / lb (USD154 / t) on the back of higher ethylene feedstock, according to the company’s letter to customers.
The price increase will take effect on March 1, in addition to any previously announced price changes. The letter also said the company was confirming a previously announced 7 cents / pound increase in February.
Polyethylene demand in the United States has been strong throughout the pandemic due to increased consumption of polyethylene for the production of fast-use consumer goods such as food packaging.
On the supply side, availability has been limited in recent months due to some production issues at polyethylene plants in the US and Mexico.
Earlier it was reported that LyondellBasell raised its polyethylene (PE) prices in North America by 6 cents per pound (USD132 per tonne) in January.
According to MRC’s ScanPlast, the estimated consumption of PE at the end of 2020 amounted to 2,220.64 thousand tons, which is 2% more than the same indicator a year earlier. Only LDPE and low-density polyethylene (HDPE) supplies have grown.
Major polyethylene producers in the United States include Chevron Phillips Chemical (CP Chem), Dow, LyondellBasell, ExxonMobil, Formosa, INEOS, Total Petrochemicals, and Westlake.