US LDPE margins fell 0.2% on increase in ethane

10 September 2013 15:58  [Source: ICIS news]

HOUSTON (ICIS)--US polyethylene (PE) margins for low density polyethylene (LDPE) fell by 0.2% last week, following an increase in feedstock costs, the ICIS margin report showed on Tuesday.

Integrated domestic PE margins were assessed at 63.72 cents/lb ($1,405 /tonne, €1,054/tonne) for LDPE and 54.36 cents/lb for high density polyethylene (HDPE) blow moulding in the week that ended 6 September. That represents a 0.11 cent/lb decrease on average for LDPE and 0.10 cent/lb decrease on average for HDPE from a week earlier, using ethane as a feedstock.

The PE margin decrease based on a 0.4% increase in ethane feedstock costs. The increase outweighed a 0.7% fall 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 fell by 0.15 cents/lb for LDPE on the higher ethane costs and a 1.7% fall in co-product credits.

($1 = €0.75)

By: Renzo Pipoli
+1 713 525 2653

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