US LDPE margins rise by 0.1% on drop in ethane

03 June 2013 16:03  [Source: ICIS news]

HOUSTON (ICIS)--US polyethylene (PE) margins for low density polyethylene (LDPE) rose by 0.1%, following a slight drop in ethane costs, which was limited by a drop in co-product credits, the ICIS margin report showed on Monday.

Integrated domestic PE margins were assessed at 62.53 cents/lb ($1,379/tonne, €1,061/tonne) for LDPE and 51.23 cents/lb for high density polyethylene (HDPE) blow moulding in the week that ended on 31 May. That represents a 0.08 cent/lb increase on average from a week earlier, using ethane as a feedstock.

The margin increased based on a 2.0% fall in ethane costs, which was limited by a 3.9% fall 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 climbed by more than 2 cents/lb in line with increases in export polymer prices.  

($1 = €0.77)

By: Michelle Klump
+1 713 525 2653

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