US LDPE margins drop by 0.1% on increase in ethane

03 September 2013 16:02  [Source: ICIS news]

HOUSTON (ICIS)--US polyethylene (PE) margins for low density polyethylene (LDPE) fell by 0.1% last week, following an increase in feedstock costs, the ICIS margin report showed on Tuesday.

Integrated domestic PE margins were assessed at 63.83 cents/lb ($1,407 /tonne, €1,069/tonne) for LDPE and 54.46 cents/lb for high density polyethylene (HDPE) blow moulding in the week that ended 30 August. That represents a 0.09 cent/lb decrease on average for LDPE and 0.08 cent/lb increase on average for HDPE from a week earlier, using ethane as a feedstock.

The PE margin increased based on a 1.4% increase in ethane feedstock costs. The increase outweighed a 2.5% 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 PE slipped by about 0.09 cents/lb for LDPE.

($1 = €0.76)

By: Renzo Pipoli
+1 713 525 2653

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