US LDPE margins improve on feedstock cost decline

14 January 2013 20:20  [Source: ICIS news]

HOUSTON (ICIS)--US polyethylene (PE) margins for low density polyethylene (LDPE) rose by 1.5% from the previous week, based on lower ethane costs, the ICIS margin report showed on Monday.

Integrated domestic PE margins were assessed at 57.05 cents/lb ($1,258/tonne, €943/tonne) for LDPE and 45.65 cents/lb for high density polyethylene (HDPE) blow moulding in the week that ended on 11 January. That represents an 0.85 cent/lb increase on average from a week earlier, using ethane as a feedstock.

The margin improvement was a result of a 7.3% fall in ethane feedstock costs and a 1.0% rise 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 2.42 cents/lb, based on a 1.5 cent/lb increase in export polymer prices.

($1 = €0.75)

By: Michelle Klump
+1 713 525 2653

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