US LDPE margins rise by 3.1% on lower feedstock costs

20 August 2012 15:52  [Source: ICIS news]

HOUSTON (ICIS)--US polyethylene (PE) margins for low density polyethylene (LDPE) rose by 3.1% last week, following a decrease in feedstock ethane costs and an increase in co-product credits, the ICIS margin report showed on Monday.

Integrated domestic PE margins were assessed at 49.45 cents/lb ($1,090/tonne, €883/tonne) for LDPE and 37.95 cents/lb for high density polyethylene (HDPE) blow moulding in the week that ended on 17 August. That represents a  1.47 cent/lb increase on average from a week earlier, using ethane as a feedstock.

The margin bump was a result of a 7.5% fall in ethane feedstock costs and a 2.5% increase in co-product credits.  

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 climbed by around 3.46 cents/lb, boosted by higher export prices.

($1 = €0.81)

By: Michelle Klump
+1 713 525 2653

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