US LDPE margins fall by 0.5% on higher feedstock costs

10 February 2014 15:26  [Source: ICIS news]

HOUSTON (ICIS)--US polyethylene (PE) margins for low density polyethylene (LDPE) fell by 0.5%, following a jump in feedstock ethane costs, the ICIS margin report showed on Monday.

Integrated domestic PE margins were assessed at 62.73 cents/lb ($1,383/tonne) for LDPE and 53.50 cents/lb for high density polyethylene (HDPE) blow moulding in the week that ended on 7 February. That represents a 0.32 cent/lb decrease on average for LDPE and  a 0.34 cent/lb decrease on average for HDPE, from a week earlier, using ethane as a feedstock.

Ethane costs rose by 2.2%, while co-product credits edged up slightly. Average PE margins for January are about 1.95 cents/lb lower than December 2013 and are ta a five-month low.

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.

By: Michelle Klump
+1 713 525 2653

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