Polyethylene Overview
Buyers reported that resin availability is improving but certain grades such as LLDPE C6 and HDPE. Blow Molding remain tight. Production in the US continues to improve with reports that most units are up and running as ethylene supply improves due to crackers coming online. However, several plants are not back to full production with reports of two major producers running at about 80% of the pre-freeze levels due to mechanical/feedstock limitations. Several resin producers are indicating inventory levels should improve in May, resolving many of the force majeure events but allocations are likely to continue through June. Price increases for all PE grades of 5-6 cpp have been communicated to the domestic market effective May 1, 2021. Domestic HDPE spot prices (FOB Houston Railcar) were reported in the range of 83-87 cents per pound (cpp) on a notional basis. LLDPE butene resin prices were reported in the 80-84 cpp range (down 1 cpp) and LDPE was reported flat with prices in the range o