US LDPE margins virtually unchanged on slight drop in ethane

22 April 2013 20:06  [Source: ICIS news]

HOUSTON (ICIS)--US polyethylene (PE) margins for low density polyethylene (LDPE) were virtually unchanged following a slight decrease in ethane costs and a softening of co-product credits, the ICIS margin report showed on Monday.

Integrated domestic PE margins were assessed at 62.42 cents/lb ($1,376/tonne, €1,046/tonne) for LDPE and 51.13 cents/lb for high density polyethylene (HDPE) blow moulding in the week that ended on 19 April. That represents a 0.01 cent/lb decrease on average from a week earlier, using ethane as a feedstock.

Margins were little changed after the benefit of a 1% decrease in ethane costs was essentially wiped out by a 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 3.06 cents/lb, based on a 3 cent/lb softening of spot export prices.

($1 = €0.76)

By: Michelle Klump
+1 713 525 2653

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