Integrated domestic PE margins were assessed at 70.49 cents/lb ($1,554/tonne) for LDPE and 61.24 cents/lb for high density polyethylene (HDPE) blow moulding in the week that ended on 6 June. That represents a 0.36 cent/lb decrease on average for LDPE and a 0.35 cent/lb decrease for HDPE, from a week earlier, using ethane as a feedstock.
Ethane costs for the week ending on 6 June rose by 1.1%, while co-product credits fell by 4.1%. There was a 0.33 cents/gal hike in ethane prices. The fall in co-product credits was the result of the lower June propylene contract settlement and lower C4 values.
May contract-based standalone margins were revised downwards following the 0.25 cents/lb higher settlement of the May ethylene contract price. Average May standalone PE margins were 0.14 cents/lb lower than in April but more than 8 cents/lb stronger than May 2013.