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LyondellBasell Reduces June Polyethylene Price Increase
June 13, 2022
As producers attempt to push through June price increases to preserve margins ahead of a dismal outlook for the second half of the year, one major Polyethylene producer has relaxed its June initiative.
In a letter to customers, LyondellBasell said it would amend its previously announced June price increase of $.09/lb for all grades of Polyethylene sold in North America to an increase of $.05/lb. The company also announced a $.05/lb increase for PE, effective July 1.
LyondellBasell's reduced increase follows a successful $.03/lb increase that was implemented for May PE contracts.
Other producers have price increases out for June within a range of $.05-.07/lb. And so far, only one producer has stepped out with a July price increase of $.05/lb.
The proposed price increase also comes as inventories remain near record levels despite a slowdown in production. Houston warehouses also remain mostly full, while one new major producer is expected to enter the market with new PE capacity over the next two months.
By The Plastics Exchange.
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