US LDPE margins fall by 1.4% on higher ethane

22 October 2012 16:20  [Source: ICIS news]

HOUSTON (ICIS)--US polyethylene (PE) margins for low density polyethylene (LDPE) fell by 1.4%, based on an increase in ethane costs and a fall in co-product credits, the ICIS margin report showed on Monday.

Integrated domestic PE margins were assessed at 54.32 cents/lb ($1,198/tonne, €922/tonne) for LDPE and 42.89 cents/lb for high density polyethylene (HDPE) blow moulding in the week that ended on 19 October. That represents a 0.75 cent/lb decrease on average from a week earlier, using ethane as a feedstock.

The lower margin was a result of a 4.6% rise in feedstock ethane costs, and a 2.3% fall in co-product credits, which were hit by lower pygas 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 fell by around 3.5 cents/lb, based on lower export prices and higher feedstock costs.

($1 = €0.77)


By: Michelle Klump
+1 713 525 2653



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