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ExxonMobil Relaxes September Polyethylene Price Increase
09/26/2024
In a letter to customers dated September 25, 2024, ExxonMobil revised a previously nominated $.05/lb increase to just $.03/lb, still effective September 1st on all HDPE, LDPE, LLDPE & mLLDPE resins.
The announcement comes as the steep four-month Ethylene rally, which saw spot prices nearly double to $.385/lb, quickly unwinds with a sharp $.12/lb drop.
The revision also follows a large August Polyethylene inventory build based on preliminary figures released earlier this month by the American Chemistry Council (ACC).
In addition, the resin industry and beyond has also become justifiably concerned for a potential labor strike at Gulf and East Coast ports, which would be highly disruptive.
Despite continued strength in US export data released by the ACC, exports from other regions, like Asia and the Middle East, continue to be highly competitive on the international market, pressuring Polyethylene pricing from the US. In addition, Brazil is raising its tariffs on imported Polyethylene from 12% to 20%.
Regardless of the gentler increase being sought, it is uncertain that any increase will be implemented for Sept PE contracts based on weakening supply / demand fundamentals and waning market sentiment.
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