US LDPE margins rose by 0.3% on rise in ethane

15 July 2013 16:26  [Source: ICIS news]

HOUSTON (ICIS)--US polyethylene (PE) margins for low density polyethylene (LDPE) rose by 0.3%, following a rise in co-product credits, the ICIS margin report showed on Monday.

Integrated domestic PE margins were assessed at 63.99 cents/lb ($1,411 /tonne, €1,086/tonne) for LDPE and 54.64 cents/lb for high density polyethylene (HDPE) blow moulding in the week that ended on 12 July. That represents a 0.23 cent/lb increase on average from a week earlier, using ethane as a feedstock.

The PE margin increased based on a 7.1% rise in co-product credits caused by higher crude C4 and pygas values. Ethane costs increased by 0.3% as ethane spot prices increased slightly.

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 export LDPE margins climbed by 0.74 cents/lb, while HDPE margins increased by 1.24 cents/lb. The margin improvements were largely a result of a rise in spot export prices, as well as higher co-product credits.

 ($1 = €0.77)

By: Michelle Klump
+1 713 525 2653

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