US LDPE margins slip by 0.4% on slight increase in ethane

07 May 2013 17:25  [Source: ICIS news]

HOUSTON (ICIS)--US polyethylene (PE) margins for low density polyethylene (LDPE) fell by 0.4%, following a slight increase in ethane costs, the ICIS margin report showed on Tuesday.

Integrated domestic PE margins were assessed at 61.99 cents/lb ($1,367/tonne, €1,039/tonne) for LDPE and 50.70 cents/lb for high density polyethylene (HDPE) blow moulding in the week that ended on 3 May. That represents a 0.23 cent/lb decrease on average from a week earlier, using ethane as a feedstock.

The margin fell based on a 1.3% rise in ethane costs, and a 1.1% weakening 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 0.2 cents/lb, based on the increase in ethane costs.

Average margins in April for integrated producers were among the highest on record, according to the ICIS margins report.  

($1 = €0.76)

By: Michelle Klump
+1 713 525 2653

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