US LDPE margins fell 0.1% on increase in ethane

23 September 2013 15:54  [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 Monday.

Integrated domestic PE margins were assessed at 63.96 cents/lb ($1,410/tonne, €1,043/tonne) for LDPE and 54.62 cents/lb for high density polyethylene (HDPE) blow moulding in the week that ended 20 September. That represents a 0.06 cent/lb decrease on average for LDPE and 0.04 cent/lb decrease on average for HDPE from a week earlier, using ethane as a feedstock.

The PE margin decreased because of higher energy costs. Ethane feedstock costs and co-product credits were flat. Lower pyrolysis gas (pygas) prices balanced higher crude C4 values and resulted in the unchanged 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 LDPE export margins rose by 8.20 cents/lb for LDPE on lower naphtha costs, firmer spot PE prices and a rise in co-product credits.

($1 = €0.74)

By: Renzo Pipoli
+1 713 525 2653

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