LME Plastics: November PP higher but lldPE static

22 November 2006 13:53  [Source: ICIS news]

LONDON (ICIS news)--Polypropylene plastics future prices climbed higher on the London metal Exchange on Wednesday but polyethylene contract numbers were little changed.

The official polypropylene (PP) price rose by $15 to $1,175/tonne. The LME official linear low density polyethylene (lldPE) price was down 50 cents at $1,080/tonne and January and February contract prices showed further weakness.

November lldPE had gained ground on Tuesday closing up $45 to $1,105/tonne. PP prices were also up during Tuesday trading closing $25 higher at $1,135/tonne.

Unofficial figures showed that 40 lots of PP and 28 lots of lldPE traded to the 17:00 close on Tuesday. Each lot is 24.75 tonnes.

European polyethylene numbers may have hit minimum levels in the physical market this year, buyers and sellers said on Tuesday, if ethylene first quarter contract prices fail to fall more than €100/tonne, ICIS news reported.

One producer said market sentiment has moved away from expectations of major drops in the upstream markets as the anticipated downward spiral in crude numbers had not happened.

Rompetrol said that cash generated by the sale of a 10-25% stake in the company would be partially ploughed into reviving and expanding petrochemical operations.

Date:		Contract:
22 Nov-06		lldPE				PP
LME Reference Price		1080				1175
Forward Prices:		Bid		Offer		Bid		Offer
December-06		1070		1080		1165		1175
January-07		1090		1100		1155		1165
February-07		1105		1115		1155		1165

The LME official or reference prices are the offer prices for the first forward delivery month - in this case December 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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