US LDPE margins fall by 0.6% on higher ethane

27 August 2013 17:14  [Source: ICIS news]

HOUSTON (ICIS)--US polyethylene (PE) margins for low density polyethylene (LDPE) fell by 0.6% last week following an increase in feedstock costs, the ICIS margin report showed on Tuesday.

Integrated domestic PE margins were assessed at 63.92 cents/lb ($1,409 /tonne, €1,057/tonne) for LDPE and 54.54 cents/lb for high density polyethylene (HDPE) blow moulding in the week that ended 23 August. That represents a 0.41 cent/lb decrease on average for LDPE and 0.40 cent/lb decrease on average for HDPE from a week earlier, using ethane as a feedstock.

The PE margin increased based on a 3.4% increase in ethane feedstock costs. Co-product credits were relatively flat.

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 softened by about 0.41 cent/lb for LDPE because of the higher ethane costs. Export prices for PE were unchanged and co-product credits were down slightly.

($1 = €0.75)

By: Renzo Pipoli
+1 713 525 2653

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