LLDPE Polyethylene Market Update

POLYETHYLENE MOVED UP IN JANUARY – After three months of flat pricing, linear low density polyethylene (LLDPE), hexene, contract pricing moved up $0.03/lb. Final settlement came after weeks of negotiations between buyers and sellers at odds over the proposed price hikes. Producers had been pressing for the higher prices arguing that supply has tightened enough to warrant an increase, while buyers insisted demand was not strong enough to justify a price move. In the end, producers won out and have even doubled-down, proposing an additional price hike of between $0.03/lb and $0.05/lb for February.

Hard to say if this increase will pass, a lot of capacity in the stretch film market today. Manufacturers have added lines and are ramping up production and need a home for all this new film. Distributors have a lot of film on hand, will see how this increase plays out.

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