US LDPE margins fall by 0.4% on higher ethane costs

15 April 2013 16:47  [Source: ICIS news]

HOUSTON (ICIS)--US polyethylene (PE) margins for low density polyethylene (LDPE) fell by about 0.4%, following an increase in ethane costs and a softening of co-product credits, the ICIS margin report showed on Monday.

Integrated domestic PE margins were assessed at 62.43 cents/lb ($1,376/tonne, €1,046/tonne) for LDPE and 51.12 cents/lb for high density polyethylene (HDPE) blow moulding in the week that ended on 12 April. That represents a 0.2 cent/lb decrease on average from a week earlier, using ethane as a feedstock.

Margins were lower on a 0.6% increase in ethane costs, and a 2.2% softening of 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 0.3 cents/lb on a 3.2% decrease in spot co-product credits and the higher ethane costs.  

 ($1 = €0.76)

By: Michelle Klump
+1 713 525 2653

AddThis Social Bookmark Button

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly