US LDPE margins rise by nearly 1% on lower ethane costs

08 April 2013 20:08  [Source: ICIS news]

HOUSTON (ICIS)--US polyethylene (PE) margins for low density polyethylene (LDPE) rose by nearly 1%, following a decrease in ethane costs, the ICIS margin report showed on Monday.

Integrated domestic PE margins were assessed at 62.86 cents/lb ($1,386/tonne, €1,067/tonne) for LDPE and 51.54 cents/lb for high density polyethylene (HDPE) blow moulding in the week that ended on 5 April. That represents a 0.6 cent/lb increase on average from a week earlier, using ethane as a feedstock.

Margins were higher on a 5.1% fall in ethane costs. Further gains were hindered by a 1.6% fall 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 0.5 cents/lb as a 1 cent/lb fall in export prices outweighed  the cheaper ethane costs.

 ($1 = €0.77)


By: Michelle Klump
+1 713 525 2653



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