ExxonMobil Chemical surprised many in the market Friday when it announced a plan to cut prices for US polypropylene by as much as 5 cents/lb ($110/mt), regardless of any change in feedstock polymer-grade propylene pricing, for all shipments on or after June 1.
The move follows an April 1 price cut of 3-5 cents/lb ($66-$110/mt). "Polypropylene homopolymer resins, PP1024, PP1074, PP1105, and all PP2000 and PP4000 series will decrease by $110/t or $0.05/lbs," the company said in a Friday letter to customers obtained by Platts.
"All other ExxonMobil polypropylene homopolymer resins, including other PP1000 to PP6000 (Thermoforming) series inclusively, and all Achieve metallocene homopolymers, all impact copolymers, and all random co-polymers will decrease by $66/t or $0.03/lbs.
"The prices for ExxonMobil SFT grades remain unchanged."
The company is the only producer to officially announce a market-wide decrease, sources said. At least two other producers were heard adjusting prices on a case-by-case basis for their largest domestic buyers.
