US LDPE margins rise by 0.82% on lower feedstock costs

06 August 2012 15:33  [Source: ICIS news]

HOUSTON (ICIS)--US polyethylene (PE) margins for low density polyethylene (LDPE) rose by 0.82% last week, following a slight decrease in feedstock ethane costs and a hike in co-product credits, the ICIS margin report showed on Monday.

Integrated domestic PE margins were assessed at 48.89 cents/lb ($1,078/tonne, €873/tonne) for LDPE and 37.42 cents/lb for high density polyethylene (HDPE) blow moulding in the week that ended on 3 August. That represents a 0.4 cent/lb increase on average from a week earlier, using ethane as a feedstock.

The margin improvement was a result of a 0.7% reduction in ethane feedstock costs and a 6.0% hike 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 1.89 cents/lb, based on lower feedstock costs and higher export prices.

($1 = €0.81)

By: Michelle Klump
+1 713 525 2653

AddThis Social Bookmark Button

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly

Get access to breaking chemical news as it happens.
ICIS Global Petrochemical Index (IPEX)
ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index