US LDPE margins improve on feedstock cost decline

10 December 2012 17:49  [Source: ICIS news]

HOUSTON (ICIS)--US margins for low density polyethylene (LDPE) rose by 2.5% from the previous week, based on lower ethylene and ethane costs, the ICIS margin report showed on Monday.

Integrated domestic polyethylene (PE) margins were assessed at 55.88 cents/lb ($1,232/tonne, €961/tonne) for LDPE and 44.50 cents/lb for high density polyethylene (HDPE) blow moulding in the week that ended on 7 December. That represents a 1.35 cent/lb increase on average from a week earlier, using ethane as a feedstock.

The margin improvement was a result of a 10.4% fall in ethane feedstock costs and a 0.8% increase in co-product credits.  

Co-product credits are the prices 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 0.41 cents/lb, based on the cheaper feedstock prices.  

 ($1 = €0.78)

By: Michelle Klump
+1 713 525 2653

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