US LDPE margins fall on higher feedstock costs

11 February 2013 16:28  [Source: ICIS news]

US LDPE margins fall on higher feedstock costs HOUSTON (ICIS)--US polyethylene (PE) margins for low density polyethylene (LDPE) fell by 0.2% from the previous week, as higher feedstock ethane costs outweighed an increase in co-product credits, the ICIS margin report showed on Monday.

Integrated domestic PE margins were assessed at 60.96 cents/lb ($1,344/tonne, €1008/tonne) for LDPE and 49.57 cents/lb for high density polyethylene (HDPE) blow moulding in the week that ended on 8 February. That represents a 0.13 cent/lb decrease on average from a week earlier, using ethane as a feedstock.

The margin drop was a result of a 1.4% increase in ethane costs, which outweighed a 1.1% 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 fell by about 0.16 cents/lb, as higher ethane costs outweighed a rise in co-product credits, and polymer prices remained steady.

 ($1 = €0.75)


By: Michelle Klump
+1 713 525 2653

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