US LDPE margins slip by 0.3% on slight increase in ethane

29 April 2013 17:17  [Source: ICIS news]

HOUSTON (ICIS)--US polyethylene (PE) margins for low density polyethylene (LDPE) fell by 0.3%, following a slight increase in ethane costs, the ICIS margin report showed on Monday.

Integrated domestic PE margins were assessed at 62.22 cents/lb ($1,372/tonne, €1,056/tonne) for LDPE and 50.93 cents/lb for high density polyethylene (HDPE) blow moulding in the week that ended on 26 April. That represents a 0.2 cent/lb decrease on average from a week earlier, using ethane as a feedstock.

Average April margins are around 8% lower than those for March.

The margin fell based on a 1.6% rise in ethane costs, which outweighed a 1.1% rise 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 0.16 cents/lb, based on the increase in ethane costs.

($1 = €0.77)

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