LME plastics: Official prices little changed

21 July 2006 13:36  [Source: ICIS news]

LONDON (ICIS news)--Official plastics future prices were little changed on the London Metal Exchange (LME) on Friday while cash markets continued to respond to high crude oil and petrochemical feedstock costs.

The official linear low density polyethylene (lldPE) price moved up just $1 to $1,281/tonne while the official polypropylene (PP) price fell $10 to $1,250/tonne. The gain since Monday on lldPE had been $35 and the PP fall $10.

Trading interest had been evenly spread between the contacts. On Thursday 30 lots of lldPE and 45 lots of PP had traded until the 17:00 GMT close. LldPE closed up $5 at $1,280tonne. PP was unchanged at $1,255/tonne.

Cracker turnarounds were helping lift propylene prices in Asia on Friday and had helped open up the arbitrage window with the US. ICIS news reported firm PP prices at $1,250/tonne CFR China. Taiwan Polypropylene, it said, would shut PP lines in August due to a temporary feedstock shortage.  Asian propylene prices jumped over $30-70/tonne last week to a 13-year high of $1,210/tonne CFR Northeast Asia.

Date:		Contract:
21-Jul-06		lldPE				PP
LME Reference Price		1281				1250
Forward Prices:		Bid		Offer		Bid		Offer
August-06		1280		1281		1240		1250
September-06		1295		1310		1240		1250
October-06		1295		1315		1240		1250

The LME official or reference prices are the offer prices for the first forward delivery month - in this case August 2006. Bid/offer prices are given in the table above for three forward months.

Prices shown are per tonne on an FOT (free on truck) basis delivered Rotterdam/Antwerp, Singapore and Houston

By: Staff Reporter
+44 20 8652 3214

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