US LDPE margins fall by 0.63% on higher feedstock costs

14 April 2014 16:12  [Source: ICIS news]

HOUSTON (ICIS)--US polyethylene (PE) margins for low density polyethylene (LDPE) fell by 0.63% last week, following a rise in feedstock ethane costs, the ICIS margin report showed on Monday.

Integrated domestic PE margins were assessed at 70.83 cents/lb ($1,562/tonne) for LDPE and 61.68 cents/lb for high density polyethylene (HDPE) blow moulding for the week that ended 11 April. That represents a 0.45 cent/lb decrease on average for LDPE and a 0.43 cent/lb decrease for HDPE from a week earlier, using ethane as a feedstock.

Ethane costs rose by 3.3%, while co-product credits rose by 0.5% on higher C4 and pygas values, which partially counteracted the higher feedstock costs.

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
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