US LDPE margins rise by 3.0% on lower feedstock costs

04 September 2012 16:13  [Source: ICIS news]

HOUSTON (ICIS)--US polyethylene (PE) margins for low density polyethylene (LDPE) rose by nearly 3.0% last week, following a decrease in feedstock ethane costs and a rise in co-product credits, the ICIS margin report showed on Tuesday.

Integrated domestic PE margins were assessed at 51.20 cents/lb ($1,129/tonne, €892/tonne) for LDPE and 39.70 cents/lb for high density polyethylene (HDPE) blow moulding in the week that ended on 31 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 9.0% fall in ethane feedstock costs and a 1.0% rise 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 also climbed by around 1.57 cents/lb, boosted by lower ethane costs.

($1 = €0.79)

By: Michelle Klump
+1 713 525 2653

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