US LDPE margins rise by 1.37% on lower feedstock costs

24 September 2012 15:33  [Source: ICIS news]

HOUSTON (ICIS)--US margins for low density polyethylene (LDPE) rose by nearly 1.37% last week, following a decline in ethane costs, the ICIS margin report showed on Monday.

Integrated domestic PE margins were assessed at 55.65 cents/lb ($1,227/tonne, €945/tonne) for LDPE and 44.16 cents/lb for high density polyethylene (HDPE) blow moulding in the week that ended on 21 September. That represents a 0.75 cent/lb increase on average from a week earlier, using ethane as a feedstock.

The margin bump was a result of a 4.8% drop in feedstock ethane costs and flat 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 1.2 cents/lb, boosted by a decrease in feedstock costs and an increase in export prices.   

($1 = €0.77)

By: Michelle Klump
+1 713 525 2653

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