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