22 October 2004 17:27 [Source: ICIS news]
LONDON (CNI)--BP reaffirmed its support on Friday for London Metal Exchange (LME) plans to launch a futures market in plastics.
Median reports earlier today had suggested that management at BP’s planned olefins and derivative spin-off, NewCo, were “not as warm to the ideas of LME” than previous BP management.
However, a BP spokesman told CNI that the company was still “very much in favour” of LME’s plans. These are to launch linear low density (lldPE) and polypropylene (PP) futures contracts on 27 May next year.
Launch of the contracts has been delayed from the end of this year into 2005 and given companies like BP more time to align its own processes to the possible trading of plastics futures. BP and ‘NewCo’ are looking forward to the launch, the spokesman said.
He added that the interface with the LME will be different under NewCo than it would have been under BP and that the proposed spin-off has yet to work out how to manage the exercise.
Polymer producers in Europe are broadly split in their support for the contracts, with companies such as BP, Basell and Dow Chemical in favour of the LME’s plans and Borealis and Sabic EuroPetrochemicals against.
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|
Asian Chemical Connections