US LDPE margins stay relatively flat

01 October 2012 20:35  [Source: ICIS news]

HOUSTON (ICIS)--US polyethylene (PE) margins for low density polyethylene (LDPE) were relatively flat last week, as a slight decline in ethane costs was balanced by a slight rise in co-product credits, the ICIS margin report showed on Monday.

Integrated domestic PE margins were assessed at 55.64 cents/lb ($1,227/tonne, €957/tonne) for LDPE and 44.18 cents/lb for high density polyethylene (HDPE) blow moulding in the week that ended on 28 September. That represents a 0.03 cent/lb decrease on average from a week earlier, using ethane as a feedstock.

The flat margin was a result of a 0.3% drop in feedstock ethane costs, which was balanced by a slight 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 rose by around 1.5 cents/lb, boosted by a firming in export prices.   

($1 = €0.78)

By: Michelle Klump
+1 713 525 2653

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