US LDPE margins fall by 0.3% on rise in ethane

22 July 2013 15:48  [Source: ICIS news]

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

Integrated domestic PE margins were assessed at 63.80 cents/lb ($1,407 /tonne, €1,069/tonne) for LDPE and 54.45 cents/lb for high density polyethylene (HDPE) blow moulding in the week that ended on 19 July. That represents a 0.19 cent/lb decrease on average from a week earlier, using ethane as a feedstock.

The PE margin decreased based on a 2.0% rise in ethane feedstock costs. Co-product credits edged up slightly on higher crude C4 and 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.

Integrated export LDPE margins slipped by 0.23 cents/lb, while HDPE margins fell by 2.73 cents/lb. Spot HDPE prices softened by 2.50 cents/lb, while LDPE prices remained unchanged.

 ($1 = €0.76)

 


By: Michelle Klump
+1 713 525 2653



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