US LDPE margins rise by 0.5% on fall in ethane

12 August 2013 17:15  [Source: ICIS news]

HOUSTON (ICIS)--US polyethylene (PE) margins for low density polyethylene (LDPE) rose by 0.5% last week following a decrease in feedstock costs, the ICIS margin report showed on Monday.

Integrated domestic PE margins were assessed at 63.99 cents/lb ($1,411 /tonne, €1,058/tonne) for LDPE and 54.59 cents/lb for high density polyethylene (HDPE) blow moulding in the week that ended 9 August. That represents a 0.31 cent/lb increase on average for LDPE and 0.29 cent/lb increase on average for HDPE from a week earlier, using ethane as a feedstock.

The PE margin increased based on a 2.5% decrease in ethane feedstock costs. A 1% fall in co-product credits, mainly on lower pygas values, limited the margin gain.

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 PE rose by about 0.32 cents/lb because of the lower ethane costs.

($1 = €0.75)


By: Michelle Klump
+1 713 525 2653



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