US LDPE margins rise by 1.3% on lower ethane

12 November 2012 15:47  [Source: ICIS news]

HOUSTON (ICIS)--US polyethylene (PE) margins for low density polyethylene (LDPE) rose by 1.3%, based on a fall in ethane costs, the ICIS margin report showed on Monday.

Integrated domestic PE margins were assessed at 55.12 cents/lb ($1,215/tonne, €960/tonne) for LDPE and 43.71 cents/lb for high density polyethylene (HDPE) blow moulding in the week that ended on 9 November.

That represents a 0.7 cent/lb increase on average from a week earlier, using ethane as a feedstock. The higher margin was a result of 5.1% fall in ethane costs.

Integrated spot export LDPE margins rose by around 0.67 cents/lb, based on lower ethane costs, which outweighed a 1.5% reduction  in co-product credits on lower spot propylene and 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.

($1 = €0.79)

By: Michelle Klump
+1 713 525 2653

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