04 February 2013 18:06 [Source: ICIS news]
HOUSTON (ICIS)--US polyethylene (PE) margins for low density polyethylene (LDPE) rose by 1.0% from the previous week, as higher polymer prices outweighed higher ethylene costs, the ICIS margin report showed on Monday.
Integrated domestic PE margins were assessed at 61.09 cents/lb ($1,347/tonne, €983/tonne) for LDPE and 49.69 cents/lb for high density polyethylene (HDPE) blow moulding in the week that ended on 1 February. That represents a 0.60 cent/lb increase on average from a week earlier, using ethane as a feedstock.
The margin expansion was a result of an average 5 cent/lb increase in PE prices, which outweighed a 3.5 cent/lb increase in ethylene prices. Integrated PE margins also improved based on a 3.0% decline in feedstock ethane costs and a 3.6% 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 about 0.60 cents/lb, based lower ethane costs and a rise in co-product credits.
($1 = €0.73)
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