US LDPE margins slip on higher feedstock costs

05 March 2013 16:04  [Source: ICIS news]

HOUSTON (ICIS)--US polyethylene (PE) margins for low density polyethylene (LDPE) fell by 1.1% from the previous week, based on higher feedstock ethane costs, the ICIS margin report showed on Tuesday.

Integrated domestic PE margins were assessed at 60.68 cents/lb ($1,338/tonne, €1,030/tonne) for LDPE and 49.30 cents/lb for high density polyethylene (HDPE) blow moulding in the week that ended on 1 March. That represents a 0.7 cent/lb increase on average from a week earlier, using ethane as a feedstock.

The margin drop was a result of a 3.9% increase in ethane costs and a 3.2% fall in co-product credits. Ethane prices were at their highest level since November 2012.   

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 0.6 cents/lb, based on the higher ethane costs and a 1.8% decrease in spot co-product credits.

($1 = €0.77)


By: Michelle Klump
+1 713 525 2653

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