US LDPE margins rise 4.2% as feedstock costs plummet

03 March 2014 17:00 Source:ICIS News

HOUSTON (ICIS)--US polyethylene (PE) margins for low density polyethylene (LDPE) rose by 4.2%, following a significant drop in feedstock ethane costs, the ICIS margin report showed on Monday.

Integrated domestic PE margins were assessed at 67.81 cents/lb ($1,495/tonne) for LDPE and 58.60 cents/lb for high density polyethylene (HDPE) blow moulding in the week that ended on 28 February. That represents a 2.76 cent/lb increase on average for LDPE and a 2.72 cent/lb increase on average for HDPE, from a week earlier, using ethane as a feedstock.

Ethane costs fell by 13.6%, as ethane prices plummeted by 5.71 cents/gal. Co-product credits rose by 2.7%, which extended PE margins.

Co-product credits are the prices at which products such as propylene, butadiene (BD) and benzene, which are made along with ethylene in the cracking process, can be sold.

By Renzo Pipoli