US LDPE margins rise by 0.12% on lower feedstock costs

18 August 2014 16:14 Source:ICIS News

HOUSTON (ICIS)--US polyethylene (PE) margins for low density polyethylene (LDPE) rose by 0.12%, following a decrease in feedstock ethane costs, the ICIS margin report showed on Monday.

Integrated domestic PE margins were assessed at 73.71 cents/lb ($1,625/tonne) for LDPE and 64.40 cents/lb for high density polyethylene (HDPE) blow moulding in the week that ended on 15 August. That represents a 0.09 cent/lb increase on average for LDPE and HDPE, from a week earlier, using ethane as a feedstock.

Ethane costs for the week ending on 15 August fell by 1.6%. Co-product credits fell by 1.3%.  

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