US polyethylene contracts settled 5 cents a pound higher for January, industry sources confirmed Monday.
The 5 cents/lb increase matches the amount major US producers nominated last month and had been widely expected by market players. Sources have pointed to rising prices for feedstock ethylene and heavy December buying as factors that contributed to the rise after December contracts rolled over.
January HDPE contracts were assessed at 68-69 cents/lb delivered railcar for injection, 68-69 cents/lb delivered railcar for blowmolding and 71-72 cents/lb delivered railcar for high-molecular weight film. Linear low density polyethylene domestic contracts were at 66-67 cents/lb and low density polyethylene domestic contracts were at 79-81 cents.
Major US producers have also proposed a 4 cent/lb increase for February, according to industry sources, although reaction has been mixed as to whether or not producers will be able to get the full increase.
