US LDPE margins fall by 0.16% on higher feedstock costs

26 August 2014 17:57 Source:ICIS News

HOUSTON (ICIS)--US polyethylene (PE) margins for low density polyethylene (LDPE) fell by 0.16%, following an increase in feedstock ethane costs, the ICIS margin report showed on Tuesday.

Integrated domestic PE margins were assessed at 73.69 cents/lb ($1,625/tonne) for LDPE and 64.36 cents/lb for high density polyethylene (HDPE) blow moulding in the week that ended on 22 August. That represents a 0.12 cent/lb decrease on average for LDPE and a 0.14 cent/lb decrease for HDPE, from a week earlier, using ethane as a feedstock.

Ethane costs for the week ending on 22 August rose by 1.5%. Co-product credits fell slightly, by 0.3%, as energy costs declined.   

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