US PE makers hike domestic prices, export PE offers moving higher

22-Apr-15

US polyethylene export prices were talked higher at the start of the week, as market sources said suppliers were attempting to implement the 5 cents/lb increase that had been announced for the domestic market in May, as per Platts. A series of constraints throughout the logistical chain -- ranging from full warehouses in the Houston area to a shortage of trucks to transport bagged resin to the ports -- has slowed US resin exports and made it difficult for traders to secure resin from producers, according to multiple market sources. The issues could persist through the end of May, sources have said. North American producers have sent letters to customers over the past month announcing 5 cents/lb increases for May. Producer sources have pointed to improved domestic demand in March and April. Global prices have also increased over the past months, though multiple buyer sources have said those are due to production and supply issues in Asia and Europe than the result of stronger demand levels.