US polyethylene sales volumes increased 14.6% year on year in June, according to a report from Bank of America Merrill Lynch Thursday.
June sales volumes also climbed 13.5% from May with domestic sales up 12.3%, and export sales 18.4% higher, BoAML said, citing data from the American Chemistry Council.
The June sales figure compares to an historical average increase of 3.4% month-to-month in domestic June volumes. Year-to-date, sales volumes were behind 2011 by 2.5% with domestic volumes lagging only 1.3%
The domestic sales volume increase coincided with a 7 cents/lb ($154/mt) drop in June's domestic prices, according to Platts data. This followed a May decrease also of 7 cents/lb.
Market participants noted that there was a resurgence in demand as buyers believed the market had hit bottom and it was a good time to restock inventories.
Producers also reduced export prices to move material over May and June and now that producer inventories are lower, prices have risen. High density blow molding, for example, was assessed at just over 65 cents/lb FAS Houston in the beginning of May and fell to a two-month low of 51 cents/lb FAS Houston on June 20, according to Platts data. The price has since risen to 57 cents/lb FAS Houston.
