US LDPE margins decline by 1.8% on feedstock cost increase

28 January 2013 16:24  [Source: ICIS news]

HOUSTON (ICIS)--US polyethylene (PE) margins for low density polyethylene (LDPE) fell by 1.8% from the previous week, based on higher ethane costs, the ICIS margin report showed on Monday.

Integrated domestic PE margins were assessed at 60.47 cents/lb ($1,333/tonne, €987/tonne) for LDPE and 49.11 cents/lb for high density polyethylene (HDPE) blow moulding in the week that ended on 25 January. That represents a 1.1 cent/lb decrease on average from a week earlier, using ethane as a feedstock.

The margin erosion was a result of an 11.1% hike in ethane feedstock costs. Despite the drop, average margins for January are at a new record high.

Integrated spot export LDPE margins rose by about 0.97 cents/lb, based on a 2 cent/lb increase in export polymer prices.

 ($1 = €0.74)

By: Michelle Klump
+1 713 525 2653

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