US LDPE margins rise by 1.7% on lower feedstock costs

30 July 2012 16:00  [Source: ICIS news]

HOUSTON (ICIS)--US polyethylene (PE) margins for low density polyethylene (LDPE) rose by 1.7% last week, following a decrease in feedstock ethane costs, the ICIS margin report showed on Monday.

Integrated domestic PE margins were assessed at 48.49 cents/lb ($1,069/tonne, €866/tonne) for LDPE and 37.03 cents/lb for high density polyethylene (HDPE) blow moulding in the week that ended on 27 July. That represents an 0.84 cent/lb increase on average from a week earlier, using ethane as a feedstock.

The margin improvement was a result of a 5.9% reduction in ethane feedstock costs, and a 2.2% reduction 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 LDPE margins improved by 1.8 cents/lb, based on lower feedstock costs and a firming in export prices.

($1 = €0.81)

By: Michelle Klump
+1 713 525 2653

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