US LDPE margins fall by 0.7% on rise in ethane

28 May 2013 16:17  [Source: ICIS news]

HOUSTON (ICIS)--US polyethylene (PE) margins for low density polyethylene (LDPE) fell by 0.7%, following a slight increase in ethane costs and a drop in co-product credits, the ICIS margin report showed on Tuesday.

Integrated domestic PE margins were assessed at 62.45 cents/lb ($1,377/tonne, €1,060/tonne) for LDPE and 51.15 cents/lb for high density polyethylene (HDPE) blow moulding in the week that ended on 24 May. That represents a 0.43 cent/lb decrease on average from a week earlier, using ethane as a feedstock.

The margin decreased based on a 2.6% rise in ethane costs and a 0.7% dip 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 were down by around 0.44 cents/lb, based on the higher ethane costs, as well as the dip in co-product credits.

($1 = €0.77)

By: Michelle Klump
+1 713 525 2653

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