US LDPE margins fall by 0.3%

29 October 2012 23:09  [Source: ICIS news]

HOUSTON (ICIS)--US polyethylene (PE) margins for low density polyethylene (LDPE) fell by 0.3%, based on a fall in co-product credits, which outweighed a slight drop in ethane costs, the ICIS margin report showed on Monday.

Integrated domestic PE margins were assessed at 54.15 cents/lb ($1,194/tonne, €919/tonne) for LDPE and 42.73 cents/lb for high density polyethylene (HDPE) blow moulding in the week that ended on 26 October. That represents a 0.2 cent/lb decrease on average from a week earlier, using ethane as a feedstock.

The lower margin was a result of a 5.9% fall in co-product credits, which outweighed a 0.8% fall in ethane costs.

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 0.1 cents/lb, based on lower co-product credits.

($1 = €0.77)


By: Michelle Klump
+1 713 525 2653

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