ExxonMobil has officially confirmed a previously announced price increase of 3 cents per pound, equivalent to USD 66 per tonne, for all polyethylene (PE) grades in North America, effective for the month of October. Negotiations on the October PE contracts are still in progress, following consecutive price hikes in August and September.

The August sales figures for polyethylene in the domestic market exhibited robust performance, reaching their highest levels in 2023, surpassing any previous month since March. However, the sales figures for September showed a decline compared to the impressive figures in August. This indicates fluctuations in market demand and underscores the need for ongoing contract negotiations.

When examining the broader context, domestic demand as a whole remains lower in comparison to the previous year, particularly from November and December onwards. Historically, these months are characterized by weaker sales, and it appears that this trend has continued into the current year.

Despite fluctuations in demand, utilization rates for PE production in the United States have remained consistently high, averaging around 90% in recent months. Strong export sales have played a crucial role in offsetting the market's domestic weaknesses, contributing to the industry's resilience.

It's worth noting that ExxonMobil faced challenges in the third quarter of 2023, as the company's net profit declined by more than half. This decrease in profitability can be attributed to a drop in production and falling prices.

In a broader industry context, data from ScanPlast's review reveals a notable increase in the estimated consumption of polyethylene during the first eight months of 2023. The upward trend in the supply of various ethylene polymers also underscores the resilience and adaptability of the industry in response to changing market conditions.

Exxon Mobil Corporation stands as the largest American private oil company and is among the world's largest corporations based on market capitalization. The company boasts a global presence, with operations spanning diverse regions, including the United States, Canada, the Middle East, Azerbaijan, and more. This extensive reach and diverse portfolio position ExxonMobil as a significant player in the energy and petrochemical sectors.

ExxonMobil's confirmation of a 3-cent per pound price increase for all grades of polyethylene in North America for October is a notable development in the industry. It reflects the ongoing market dynamics, including fluctuations in demand, export sales, and pricing strategies. The company's financial performance in the third quarter of 2023 also highlights the impact of market conditions on industry players. Furthermore, the industry's ability to adapt and exhibit growth, as evidenced by the increased consumption of polyethylene, underscores its resilience in the face of changing market dynamics. Exxon Mobil Corporation's global presence and diversified operations make it a significant contributor to the energy and petrochemical sectors.