US LDPE margins rose by 0.5% on decrease in ethane

05 August 2013 17:16  [Source: ICIS news]

HOUSTON (ICIS)--US polyethylene (PE) margins for low density polyethylene (LDPE) rose by 0.5%, following a decrease in feedstock costs and an increase in co-product credits, the ICIS margin report showed on Monday.

Integrated domestic PE margins were assessed at 63.68 cents/lb ($1,404 /tonne, €1,053/tonne) for LDPE and 54.30 cents/lb for high density polyethylene (HDPE) blow moulding in the week that ended on 2 August. That represents a 0.29 cent/lb increase on average for LDPE and 0.26 cent/lb increase on average for HDPE, from a week earlier, using ethane as a feedstock.

The PE margin increased based on a 1.1% decrease in ethane feedstock costs, and a 2.1% rise in co-product credits. 

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 for LDPE rose by about 0.34 cents/lb while HDPE margins rose by about 0.30 cents/lb because of the lower ethane costs and a rise in co-product credits. Co-product credits for ethane rose largely on higher spot propylene values.   

 ($1 = €0.75)

By: Michelle Klump
+1 713 525 2653

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