US LDPE margins increase by 0.69% on lower ethane

15 October 2012 15:46  [Source: ICIS news]

HOUSTON (ICIS)--US polyethylene (PE) margins for low density polyethylene (LDPE) rose by 0.69%, as a reduction in ethane costs outweighed a fall in co-product credits, the ICIS margin report showed on Monday.

Integrated domestic PE margins were assessed at 55.07 cents/lb ($1,214/tonne, €935/tonne) for LDPE and 43.64 cents/lb for high density polyethylene (HDPE) blow moulding in the week that ended on 12 October. That represents a 0.37 cent/lb increase on average from a week earlier, using ethane as a feedstock.

The improved margin was a result of a 3.6% drop in feedstock ethane costs, which offset a 2.5% fall 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 0.4 cent/lb, as lower ethane costs outweighed a reduction in co-product credits.

($1 = €0.77)

By: Michelle Klump
+1 713 525 2653

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