US LDPE margins fall by 1.7% on higher ethane costs

26 March 2013 14:03  [Source: ICIS news]

HOUSTON (ICIS)--US polyethylene (PE) margins for low density polyethylene (LDPE) fell by about 1.7%, following an increase in ethane costs and a drop in co-product credits, the ICIS margin report showed on Tuesday.

Integrated domestic PE margins were assessed at 59.45 cents/lb ($1,311/tonne, €1,022/tonne) for LDPE and 51.64 cents/lb for high density polyethylene (HDPE) blow moulding in the week that ended on 22 March. That represents a 1 cent/lb decrease on average from a week earlier, using ethane as a feedstock.

Margins were lower on a 6% rise in ethane costs and a 4% drop in co-product credits. Co-product credits fell on lower 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 fell by about 2 cents/lb on the higher ethane costs, as well as a 1 cent/lb fall in export LDPE prices.

 ($1 = €0.78)


By: Michelle Klump
+1 713 525 2653

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