US LDPE margins rise by 0.4% on fall in ethane

19 August 2013 16:35  [Source: ICIS news]

HOUSTON (ICIS)--US polyethylene (PE) margins for low density polyethylene (LDPE) rose by 0.4% last week following a decrease in feedstock costs, the ICIS margin report showed on Monday.

Integrated domestic PE margins were assessed at 64.33 cents/lb ($1,418 /tonne, €1,064/tonne) for LDPE and 54.94 cents/lb for high density polyethylene (HDPE) blow moulding in the week that ended 16 August. That represents a 0.24 cent/lb increase on average for LDPE and 0.25 cent/lb increase on average for HDPE from a week earlier, using ethane as a feedstock.

The PE margin increased based on a 1.8% decrease in ethane feedstock costs. A 1.5% rise in co-product credits, mainly on higher C4 and pygas values, extended the margin gain.

Co-product credits are the prices 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 2.76 cents/lb for LDPE because of the lower ethane costs as well as higher export prices.

($1 = €0.75)

By: Renzo Pipoli
+1 713 525 2653

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