US LDPE margins rise by 1.15% on lower feedstock costs

14 July 2014 15:11 Source:ICIS News

HOUSTON (ICIS)--US polyethylene (PE) margins for integrated low density polyethylene (LDPE) rose by 1.15%, following a drop in feedstock ethane costs, the ICIS margin report showed on Monday.

Integrated domestic PE margins were assessed at 72.22 cents/lb ($1,592/tonne) for LDPE and 62.94 cents/lb for high density polyethylene (HDPE) blow moulding in the week that ended on 11 July. That represents a 0.82 cent/lb increase on average for LDPE and a 0.81 cent/lb increase for HDPE, from a week earlier, using ethane as a feedstock.

Ethane costs for the week ending on 11 July fell by 6.4%, but were held back by a 1% decline in co-product credits. Ethane prices fell by 1.82 cents/lb and stand at 37% below the peak price registered in 2014 so far.

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