US LDPE margins fall slightly on rise in ethane costs

01 July 2013 17:47  [Source: ICIS news]

HOUSTON (ICIS)--US polyethylene (PE) margins for low density polyethylene (LDPE) fell by about 0.1%, following a rise in ethane costs, the ICIS margin report showed on Monday.

Integrated domestic PE margins were assessed at 63.83 cents/lb ($1,407/tonne, €1,083/tonne) for LDPE and 52.49 cents/lb for high density polyethylene (HDPE) blow moulding in the week that ended on 28 June. That represents a 0.10 cent/lb decrease on average from a week earlier, using ethane as a feedstock.

June integrated margins were revised upward following the higher settlement of the June propylene contract price.

The PE margin decreased based on a 0.4% rise in ethane costs, as well as a 2.9% drop in co-product credits as a result of lower pygas and crude C4 values.

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 around 0.12 cents/lb on the higher ethane costs and a decline in co-product credits.

($1 = €0.77)


By: Michelle Klump
+1 713 525 2653

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