US LDPE margins slip on higher feedstock costs

25 February 2013 20:13  [Source: ICIS news]

HOUSTON (ICIS)--US polyethylene (PE) margins for low density polyethylene (LDPE) fell by 0.3% from the previous week, based on higher feedstock ethane costs, the ICIS margin report showed on Monday.

Integrated domestic PE margins were assessed at 61.38 cents/lb ($1,353/tonne, €1,028/tonne) for LDPE and 49.98 cents/lb for high density polyethylene (HDPE) blow moulding in the week that ended on 22 February. That represents a 0.2 cent/lb increase on average from a week earlier, using ethane as a feedstock.

The margin drop was a result of a 3.8% increase in ethane costs, which outweighed a 4.1% increase 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 0.26 cents/lb, based on the higher ethane costs.

 ($1 = €0.76)

By: Michelle Klump
+1 713 525 2653

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