US LDPE margins rise by 0.18% on lower feedstock costs

06 May 2014 15:54 Source:ICIS News

HOUSTON (ICIS)--US polyethylene (PE) margins for low density polyethylene (LDPE) rose by 0.18%, following a slight drop in feedstock ethane costs, the ICIS margin report showed on Tuesday.

Integrated domestic PE margins were assessed at 70.61 cents/lb ($1,557/tonne) for LDPE and 61.38 cents/lb for high density polyethylene (HDPE) blow moulding in the week that ended on 2 May. That represents a 0.13 cent/lb increase on average for LDPE and HDPE, from a week earlier, using ethane as a feedstock.

Ethane costs fell by 1.1% on a 0.35 cent/gal decrease in ethane prices. Co-product credits were relatively flat.

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.

Standalone contract PE margins for March and April were revised upwards following March and April ethylene contract price settlements. Following the revisions, average March standalone contract margins are the highest since ICIS margin records began in 2000. Average margins for April are the second highest.

By Michelle Klump