US LDPE margins rise by 0.9% on drop in ethane

10 June 2013 15:19  [Source: ICIS news]

HOUSTON (ICIS)--US polyethylene (PE) margins for low density polyethylene (LDPE) rose by 0.9%, following a drop in ethane costs to their lowest level since late February, the ICIS margin report showed on Monday.

Integrated domestic PE margins were assessed at 63.11 cents/lb ($1,391/tonne, €1,057/tonne) for LDPE and 51.79 cents/lb for high density polyethylene (HDPE) blow moulding in the week that ended on 7 June. That represents a 0.6 cent/lb increase on average from a week earlier, using ethane as a feedstock.

The margin increased based on a 5.2% fall in ethane costs, which was limited by a 3.4% 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 climbed by around 0.6 cents/lb along with the lower ethane costs, and unchanged export prices.

($1 = €0.76)

By: Michelle Klump
+1 713 525 2653

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