US LDPE margins rise by 0.5% on lower ethane costs

06 November 2012 15:58  [Source: ICIS news]

HOUSTON (ICIS)--US polyethylene (PE) margins for low density polyethylene (LDPE) rose by 0.5%, based on a fall in ethane costs, the ICIS margin report showed on Tuesday.

Integrated domestic PE margins were assessed at 54.42 cents/lb ($1,200/tonne, €936/tonne) for LDPE and 43.01 cents/lb for high density polyethylene (HDPE) blow moulding in the week that ended on 2 November. That represents a 0.3 cent/lb increase on average from a week earlier, using ethane as a feedstock.

The higher margin was a result of a 2.2% fall in ethane costs and a 0.6% increase 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 fell by around 1.65 cents/lb, based a drop in export prices, which outweighed a drop in feedstock prices.

($1 = €0.78)

By: Michelle Klump
+1 713 525 2653

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