US LDPE margins fall 0.09% on drop in co-product credits

08 July 2013 22:33  [Source: ICIS news]

HOUSTON (ICIS)--US polyethylene (PE) margins for low density polyethylene (LDPE) fell by 0.09%, following a fall in co-product credits and flat ethane costs, the ICIS margin report showed on Monday.

Integrated domestic PE margins were assessed at 63.77 cents/lb ($1,406 /tonne, €1,097/tonne) for LDPE and 54.41 cents/lb for high density polyethylene (HDPE) blow moulding in the week that ended on 5 July. That represents a 0.07 cent/lb decrease on average from a week earlier, using ethane as a feedstock.

Contract standalone margins for April, May and June were revised upwards following the triple settlement of the ethylene contract price. Average standalone margins for the second quarter of 2013 are the highest since ICIS records began in 2000.

The PE margin decreased based on a 2.4% fall in co-product credits as lower crude C4 prices outweighed higher pygas 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.

 ($1 = €0.78)

By: Michelle Klump
+1 713 525 2653

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