US PE margins fall by 1.1% on higher feedstock costs

25 June 2012 16:16  [Source: ICIS news]

HOUSTON (ICIS)--US polyethylene (PE) margins fell by 1.1% last week, following an increase in feedstock ethane costs, the ICIS margin report showed on Monday.

Integrated domestic PE margins were assessed at 57.75 cents/lb ($1,273/tonne, €1,018/tonne) for low density polyethylene (LDPE) and 46.23 cents/lb for high density polyethylene (HDPE) blow moulding in the week that ended on 22 June. That represents a 0.6 cent/lb decrease from a week earlier, using ethane as a feedstock.

The margin decline was a result of a 2.0% increase in ethane feedstock costs and a 5.9% fall in co-product credits, according to the report.

Co-product credits are the price at which products such as propylene, butadiene (BD) and benzene, which are made along with ethylene in the cracking process, can be sold.

Integrated spot export PE margins slipped by 0.6 cent/lb, based on higher ethane costs, the report states.

($1 = €0.80)

By: Michelle Klump
+1 713 525 2653

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