US LDPE margins rise by 0.3% on lower feedstock costs

18 September 2012 15:43  [Source: ICIS news]

HOUSTON (ICIS)--US polyethylene (PE) margins for low density PE (LDPE) rose by nearly 0.3% last week, following a slight decline in ethane costs, the ICIS margin report showed on Tuesday.

Integrated domestic PE margins were assessed at 54.90 cents/lb ($1,210/tonne, €920/tonne) for LDPE and 43.42 cents/lb for high density PE (HDPE) blow moulding in the week that ended on 14 September. That represents a 0.15 cent/lb increase on average from a week earlier, using ethane as a feedstock.

The margin bump was a result of a 2.5% drop in feedstock ethane costs. However, most of that benefit was outweighed by a 4.2% drop in cracker co-product credits caused by lower C4 values.

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 0.15 cents/lb, boosted by a decrease in feedstock costs.   

($1 = €0.76)

By: Michelle Klump
+1 713 525 2653

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