POLYETHYLENE MOVES UP IN MARCH – Domestic Linear Low-Density
Polyethylene (LLDPE) hexene contact pricing moved up $0.03/lb. for the month of March. Producers had asked for $0.05/lb., but as the month concluded, they conceded their higher cost demands settling for the $0.03. Once the market settled, the producers announced future increases of $0.05/lb. proposed for April. The primary factor driving the most recent increase was yet another announced supply reduction. On March 21st, 2023, Nova Chemical declared force majeure stating their ethylene cracker in the Sarnia, ON region experienced an unplanned outage, limiting feedstock monomer to regional PE plants. This made Nova the latest of four producers to declare a force majeure in 2023, joining INEOS, CP Chem, and Formosa. Under normal circumstances, polyethylene prices would be soaring amid these production disruptions, but 2023 has not been a normal year. Softer than expected demand has plagued the market since the middle of December. Some market watchers have pointed to recessionary...