Ineos, LyondellBasell and Dow informed their customers of an increase in the August premium to contract prices for polyethylene (PE) in the US by $0.05-0.07/lb, in addition to the July increase by the same amount, market participants said. Other sellers also intend to raise prices for the product.

Thus, the rise in price of PE in JanuaryAugust will be $0.46-0.50/lb, depending on the brand and manufacturer. This figure exceeds the average price increase of $0.24/lb that occurred in JuneDecember 2020.

In the US, PE shortages remain after winter storms in February that shut down petrochemical facilities in the Gulf of Mexico.

Some market participants expect cheaper PE only in the fourth quarter, when a plant with a capacity of about 1.25 million tons / year of the product of Gulf Coast Growth Ventures, a joint venture of ExxonMobil and Sabic, near Corpus Christi, Texas, will be commissioned. Demand for the product, especially in the packaging sector, remains strong, so prices will only come down if new capacity is launched or capacity utilization increases.