LME Plastics: LLDPE falls further despite crude gains

18 January 2007 13:48  [Source: ICIS news]

LONDON (ICIS news)--Plastics futures prices rose on the London Metal Exchange on Thursday as crude values rebounded.

The official linear low density polyethylene (LLDPE) price gained $5 to $1,105/tonne but March and April offer prices were lower.

February, March and April polypropylene (PP) prices were higher with the offical price up $5 at $1,135/tonne.

LLDPE had closed down $20 at $1,090/tonne on Wednesday and PP unchanged at $1,120/tonne.

A total of 266 lots of LLDPE and 66 lots of PP traded on Wednesday according to broker reports.

Crude futures were higher in Asia on Thursday and marginally higher in Europe.

On the physical markets, traders said that PE and PP prices in the Middle East and Asia were moving in different directions bucking the general trend.

Middle East PE prices had increased by up to $80/tonne in January compared with the previous month on limited availability.

PP prices had risen by $50/tonne in the same period to $1,330-1,430/tonne CFR (cost and freight) Middle East.

In northeast (NE) and southeast (SE) Asia, however, PE and PP prices have been sliding on falling oil prices and buyers’ unwillingness to build up stocks ahead of the Chinese New Year holidays in mid-February, traders said.

In Europe, INEOS Polyolefins said it would invest more than €150m ($193m) in its European assets during the next three years, lifting PP and high density polyethylene (HDPE) capacities at sites in Belgium and the UK.

In the US, ice storms in Texas were having no effect on PE production, suppliers said.

Date:		Contract:
18 Jan-07		LLDPE				PP
LME Reference Price		1105				1135
Forward Prices:		Bid		Offer		Bid		Offer
February -07		1190		1105		1125		1135
March -07		1095		1110		1115		1135
April -07		1095		1110		1135		1145

The LME official or reference prices are the offer prices for the first forward delivery month - in this case February 2007. Bid/offer prices are given in the table above for three forward months.

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

($1 = €0.77)

By: Staff Reporter
+44 20 8652 3214

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.

Printer Friendly