US PE margins rise from lows on falling ethane costs

HOUSTON (ICIS)–Integrated contract polyethylene (PE) margins (ethane) rose from yearly lows set in late January, increasing by about 0.30 cents/lb this week, according to the ICIS weekly margin report.

Ethane costs dropped by 3.9%, while co-product credits were steady. Ethane fell because of a 0.63 cents/gal reduction in prices. Energy costs also declined.

Yearly lows for PE margins were set during the previous week for both low density (LDPE) and high density (HDPE).