US LDPE margins rise on lower feedstock costs

19 February 2013 18:15  [Source: ICIS news]

HOUSTON (ICIS)--US polyethylene (PE) margins for low density polyethylene (LDPE) rose by 0.8% from the previous week, based on lower feedstock ethane costs and an increase in co-product credits, the ICIS margin report showed on Tuesday.

Integrated domestic PE margins were assessed at 61.58 cents/lb ($1,358/tonne, €1,018/tonne) for LDPE and 50.19 cents/lb for high density polyethylene (HDPE) blow moulding in the week that ended on 15 February. That represents a 0.5 cent/lb increase on average from a week earlier, using ethane as a feedstock.

The margin improvement was a result of a 1.8% fall in ethane costs and a 5.8% rise in co-product credits on higher crude C4 and pygas values.

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 0.37 cents/lb, as based on the lower ethane costs and improvement in co-product credits.

 ($1 = €0.75)

 


By: Michelle Klump
+1 713 525 2653



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