ExxonMobil, Total among US Polypropylene producers seeking raised margins

ExxonMobil Chemical and Total Petrochemicals are joining other polypropylene producers seeking 2-cent/lb ($44/mt) increases effective August 1, sources said Wednesday, as per Platts. ExxonMobil plans to increase the price of its impact co-polymer and PP900 random-copolymer resin grades in North America. The increase is separate from any price change resulting from movements in feedstock polymer-grade propylene contract pricing. Total announced a similar increase for all grades of polypropylene. In addition, Total said July prices would increase by the amount of change in the PGP contract price from June to July and cautioned that specialty grades could increase by a greater amount. LyondellBasell last week announced plans to increase PP prices by 2 cents/lb effective August 1, in addition to any change caused by PGP contracts. Ineos is seeking an additional 2-cent increase effective for July, while Formosa Plastics Corporation announced a standalone hike of 3-cent/lb for July. The announcements come as polypropylene contracts for June settled last week at a 3-cent/lb ($66/mt) increase, following a similar hike on feedstock PGP. The 4% increase pushed homopolymer injection grade polypropylene to 74-75 cents/lb ($1,631-$1,653/mt) on a delivered-railcar basis, as assessed by Platts. Recent force majeure declarations by Formosa Plastics and Pinnacle Polymers on the production side have further squeezed an already tight supply in a busy market, lending some support to the increase announcements. Plans to reduce delivery of PP grades, by Phillips 66 amid feedstock supply issues has exerted further upward pressure on prices.
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