US LDPE margins fall by 0.31% on rise in ethane

09 December 2013 18:42  [Source: ICIS news]

HOUSTON (ICIS)--US polyethylene (PE) margins for low density polyethylene (LDPE) fell by 0.31%, following a rise in feedstock costs, the ICIS margin report showed on Monday.

Integrated domestic PE margins were assessed at 68.13 cents/lb ($1,502/tonne, €1,096/tonne) for LDPE and 58.82 cents/lb for high density polyethylene (HDPE) blow moulding in the week that ended on 6 December. That represents a 0.21 cent/lb decrease on average for LDPE and 0.19 cent/lb decrease on average for HDPE, from a week earlier, using ethane as a feedstock.

The PE margin decreased based on a 0.8% rise in ethane feedstock costs, and a 1.4% 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 climbed by around 1.85 cents/lb as a 2 cents/lb increase in export LDPE prices outweighed the higher ethane costs. Integrated HDPE export margins fell by 1.13 cents/lb on the higher feedstock costs and a 1 cent/lb softening of export HDPE prices.  

 ($1 = €0.73)

By: Michelle Klump
+1 713 525 2653

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