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US polyethylene producers will push for a 5 cents/lb increase in September, according to market sources and letters to customers obtained by S&P Global Platts.

Producers began informing customers of the planned hike late last week, with sources indicating Tuesday that all producers would now be pushing for the increase. No price increases are on the table for August contracts.

Tighter inventory levels and seasonally strong domestic demand have been cited as factors that could push prices higher. Demand traditionally tends to increase in the third quarter, per market feedback.

The increase could also be viewed as an insurance policy of sorts heading into hurricane season in the US Gulf Coast, where much of the country's polyethylene production is located.

However, increases will likely be met with a pushback from buyers, many of whom have went into previous months seeking decreases before eventually agreeing to a rollover.

Weaker global demand and pricing over the past week prompted some talk Tuesday that a US increase could be hard to implement.

August contract prices were not settled Tuesday, but market participants have indicated a continued roll from July levels could be likely.

July domestic high density polyethylene contract prices were assessed for blowmolding at 65-66 cents/lb delivered rail car basis, at 65-66 cents/lb for injection grade, and at 68-69 cents/lb for HMW film.

Linear low density polyethylene butene contract prices were assessed at 61-62 cents/lb in July, while low density polyethylene contract prices were assessed at 75-76 cents/lb.