US LDPE margins rise 0.78% on lower ethane prices

26 November 2012 17:51  [Source: ICIS news]

US LDPE margins rise 0.78% on lower ethane pricesHOUSTON (ICIS)--US polyethylene (PE) margins for low density polyethylene (LDPE) rose by 0.78% from the previous week, based on a decrease in ethane feedstock prices, which are at their lowest level since late June, the ICIS margin report showed on Monday.

Integrated domestic PE margins were assessed at 55.62 cents/lb ($1,226/tonne, €944/tonne) for LDPE and 44.25 cents/lb for high density polyethylene (HDPE) blow moulding in the week that ended on 23 November. That represents a 0.44 cent/lb increase on average from a week earlier, using ethane as a feedstock.

The margin boost was a result of a 3.1% fall in ethane feedstock costs, and a 1.5% improvement 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 rose by 0.45 cent/lb, based on the cheaper ethane prices.  

($1 = €0.77)

By: Michelle Klump
+1 713 525 2653

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