US LDPE margins fall by 0.27% on higher feedstock costs

28 April 2014 15:42 Source:ICIS News

HOUSTON (ICIS)--US polyethylene (PE) margins for low density polyethylene (LDPE) fell by 0.27%, following a rise in feedstock ethane costs, the ICIS margin report showed on Monday.

Integrated domestic PE margins were assessed at 70.48 cents/lb ($1,554/tonne) for LDPE and 61.25 cents/lb for high density polyethylene (HDPE) blow moulding in the week that ended on 25 April. That represents a 0.19 cent/lb decrease on average for LDPE and a 0.17 cent/lb decrease on average for HDPE, from a week earlier, using ethane as a feedstock.

Ethane costs rose by 0.7% . The margin was also lowered on a 1.4% reduction in co-product credits and slightly higher energy 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