US LDPE margins fall by 1.6% on higher feedstock costs

21 January 2014 15:47  [Source: ICIS news]

HOUSTON (ICIS)--US polyethylene (PE) margins for low density polyethylene (LDPE) fell by 1.6% last week, following a rise in feedstock costs, the ICIS margin report showed on Tuesday.

Integrated domestic PE margins were assessed at 66.55 cents/lb ($1,467/tonne) for LDPE and 57.26 cents/lb for high density polyethylene (HDPE) blow moulding in the week that ended on 17 January. That represents a 1.1 cent/lb decrease on average for LDPE and HDPE from a week earlier, using ethane as a feedstock.

Margins fell as ethane costs rose by 8.8% to their highest level since March 2013. Co-product credits slipped by 0.5% on slightly lower crude C4 values, while energy costs rose by 0.8%.

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 PE export margins weakened by 1.12 cents/lb on the higher feedstock costs and slightly lower co-product credits.

By: Michelle Klump
+1 713 525 2653

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