The American company LyondellBasell Industries (LBI), the world’s largest producer of polyolefins, announced the price increase in polyethylene (PE) in September, ICIS reported, citing a letter from the company’s clients.

In particular, LBI intends to increase PE prices in the next month by 5 cents per pound (USD0,11 per kg or USD110 per ton).

However, in a letter to customers the company has not indicated the reasons for future price increases.

This announcement LBI on the growth of PE prices goes against the expectations of market players, as they believe that the price of the material in one point decrease in the current year due to commissioning of new facilities in the United States and Mexico.

At the same time, one of the distributors said that the price increase LyondellBasell is seasonal, since PE prices typically rise in September – October.

According to the price review ICIS-MRC, in Russia in the last week of July is traditionally actively discussed contract prices for supplies of Russian PE in August. Some companies reported that agreed last week of August the price of the same is going to continue negotiations next week. Opinions of Russian producers regarding the August price levels divided. Some said maintaining the July level of the next month, it’s mostly deal with high-density polyethylene (HDPE). In the segment of high-density polyethylene (LDPE), some manufacturers do not rule out lower prices.

LyondellBasell – one of the world’s largest producers of polypropylene, a leading supplier of polyethylene and catalysts, as well as the developer of polyethylene and polypropylene production technology. The company manufactures products at 58 production sites in 18 countries. In addition, LyondellBasell’s Spheripol process is a developer, which is the basis of polypropylene production at Omsk polyoma and Nizhnekamskneftekhim.