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Resin Producers Looking to Open 2023 with Price Increases
December 20, 2022
Although December resin contracts have yet to be settled, North American producers are already looking to start 2023 with higher prices for both Polyethylene and Polypropylene.
In the PE market, Formosa Plastics announced in a letter to customers today that it will increase PE prices by $.06/lb, effective January 1, 2023.
The PE increase follows last week's January initiatives from Ineos Olefins & Polymers (+$.06/lb on HDPE), ExxonMobil (+$.06/lb), Dow Chemical (+$.07/lb), and Nova Chemical (+$.08/lb).
In the PP market, LyondellBasell announced in a letter to customers that it will implement a $.03/lb increase for all Polypropylene products sold in North America, effective January 1, 2023. The increase will be in addition to any change in the PGP contract between December 2022 and January 2023.
LyondellBasell is the first producer seen thus far to have issued a January increase for PP.
These January price increases come as producers have worked diligently during Q4 to reduce the supply overhang through aggressive exports, price discounts, and reduced operating rates.
By The Plastics Exchange.
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