US LDPE margins decline on feedstock cost increase

22 January 2013 16:05  [Source: ICIS news]

HOUSTON (ICIS)--US polyethylene (PE) margins for low density polyethylene (LDPE) fell by 1.4% from the previous week, based on higher ethane costs, the ICIS margin report showed on Monday.

Integrated domestic PE margins were assessed at 56.56 cents/lb ($1,247/tonne, €935/tonne) for LDPE and 45.19 cents/lb for high density polyethylene (HDPE) blow moulding in the week that ended on 18 January. That represents a 0.78 cent/lb decrease on average from a week earlier, using ethane as a feedstock.

The margin erosion was a result of a 6.2% hike in ethane feedstock costs and a 2.0% drop 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 about 1.28 cents/lb, based on a 2 cent/lb increase in export polymer prices.

 ($1 = €0.75)


By: Michelle Klump
+1 713 525 2653

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