US LDPE margins drop by 0.1% on rise in ethane

14 October 2013 18:26  [Source: ICIS news]

HOUSTON (ICIS)--US polyethylene (PE) margins for low density polyethylene (LDPE) fell by 0.1%, following a rise in feedstock costs, the ICIS margin report showed on Monday.

Integrated domestic PE margins were assessed at 68.83 cents/lb ($1,517/tonne, €1,123/tonne) for LDPE and 59.48 cents/lb for high density polyethylene (HDPE) blow moulding in the week that ended on 11 October. That represents a 0.07 cent/lb decrease on average for LDPE and 0.06 cent/lb decrease on average for HDPE, from a week earlier, using ethane as a feedstock.

The PE margin decreased based on a 0.7% increase in ethane feedstock costs, which outweighed a 1.0% rise in co-product credits, primarily on higher C4 values.

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 around 0.12 cents/lb because of the higher ethane costs.

 ($1 = €0.74)

By: Michelle Klump
+1 713 525 2653

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