US LDPE margins rise by 7.1% on higher PE prices

10 September 2012 15:45  [Source: ICIS news]

HOUSTON (ICIS)--US margins for low density polyethylene (LDPE) rose by more than 7.1% last week, following an increase in domestic polymer prices, the ICIS margin report showed on Monday.

Integrated domestic PE margins were assessed at 54.76 cents/lb ($1,207/tonne, €941/tonne) for LDPE and 43.27 cents/lb for high density polyethylene (HDPE) blow moulding in the week that ended on 7 September. That represents a 3.65 cent/lb increase on average from a week earlier, using ethane as a feedstock.

The margin bump was a result of a 4.5 cent/lb rise in domestic polymer prices, which outweighed a 5.1% rise in ethane feedstock costs and a 2.2% decrease in co-product credits.

Co-product credits are the prices 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 2.67 cents/lb, boosted by a rise in export polymer prices.  

($1 = €0.78)


By: Michelle Klump
+1 713 525 2653



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