US LDPE margins flat on lower ethane, higher co-products credits

19 November 2012 17:44  [Source: ICIS news]

HOUSTON (ICIS)--US polyethylene (PE) margins for low density polyethylene (LDPE) were virtually unchanged from the previous week, based on a slight decrease in ethane costs, which was counteracted by a slight increase in co-product credits, the ICIS margin report showed on Monday.

Integrated domestic PE margins were assessed at 55.19 cents/lb ($1,217/tonne, €949/tonne) for LDPE and 43.80 cents/lb for high density polyethylene (HDPE) blow moulding in the week that ended on 16 November.

That represents a 0.1 cent/lb decrease on average from a week earlier, using ethane as a feedstock.

The steady margin was a result of a 1.1% fall in ethane feedstock costs, which was countered by a 2.8% fall in co-product credits on lower crude C4 and pygas values.

Co-product credits are the prices that 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 slipped by around 0.07 cents/lb, as lower co-product credits outweighed the lower ethane costs.

 ($1 = €0.78)

By: Michelle Klump
+1 713 525 2653

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