US LDPE margins fall by 0.6% on rise in ethane

29 July 2013 15:59  [Source: ICIS news]

HOUSTON (ICIS)--US polyethylene (PE) margins for low density polyethylene (LDPE) fell by 0.6%, following a rise in ethane costs, the ICIS margin report showed on Monday.

Integrated domestic PE margins were assessed at 63.39 cents/lb ($1,397 /tonne, €1,048/tonne) for LDPE and 54.04 cents/lb for high density polyethylene (HDPE) blow moulding in the week that ended on 26 July. That represents a 0.41 cent/lb decrease on average from a week earlier, using ethane as a feedstock.

The PE margin decreased based on a 2.8% rise in ethane feedstock costs. Co-product credits edged down by 2.3% on 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 export margins dropped by about 0.35 cents/lb becuase of the higher ethane costs and the 0.5% lower co-product credits. Export margins are up by 12.40 cents/lb for LDPE and 13.41 cents/lb for HDPE compared with July 2012.  

 ($1 = €0.75)


By: Michelle Klump
+1 713 525 2653

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