US LDPE margins fall by 1.1% on higher ethane costs

02 April 2013 17:04  [Source: ICIS news]

HOUSTON (ICIS)--US polyethylene (PE) margins for low density polyethylene (LDPE) fell by about 1.1%, following an increase in ethane costs to their highest level since November 2012, the ICIS margin report showed on Tuesday.

Integrated domestic PE margins were assessed at 62.27 cents/lb ($1,373/tonne, €1,071/tonne) for LDPE and 50.95 cents/lb for high density polyethylene (HDPE) blow moulding in the week that ended on 29 March. That represents a 0.7 cent/lb decrease on average from a week earlier, using ethane as a feedstock.

Margins were lower on a 5.9% rise in ethane costs. Co-product credits were unchanged.

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 0.7 cents/lb on the higher ethane costs, as export PE prices were unchanged.  

($1 = €0.78)

 


By: Michelle Klump
+1 713 525 2653



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