01 February 2007 13:53 [Source: ICIS news]
LONDON (ICIS news)--March LLDPE futures prices dropped $10/tonne on the London Metal Exchange on Thursday as oil prices eased.
The new front month contract reference price was $10 higher than the February linear low density polyethylene (LLDPE) settlement price of $1,110/tonne.
The new LME polypropylene (PP) reference price – the offer price for the March PP contract – was unchanged from the previous day’s official March PP price and the February PP settlement price at $1,160/tonne.
March LLDPE had closed down $5 on Wednesday at $1,110/tonne. March PP had closed up $5 at $1,150/tone.
The February LME plastics futures contracts settled on Wednesday with February LLDPE down $45 or 3.9% compared with the start of January at $1,100/tonne and February PP down $15 or 1.3% at $1,160/tonne.
A total of 290 lots of LDPE and 232 lots of PP traded on Wednesday, brokers said. Each lot is 24.75 tonnes.
Exchange open interest at the 17:00 GMT close on Wednesday was 498 lots of LLDPE and 476 lots of PP.
Following the February settlements 187 lots of LLDPE were scheduled to go to delivery and 26 lots of PP.
In the cash markets low density (LDPE) prices settled at an increase of €20/tonne ($26/tonne), at €1,160-1,170/tonne FD (free delivered) NWE (?xml:namespace>
Producers had initially proposed hikes of €50-60/tonne for January polyethylene (PE) but lower Q1 ethylene and the lower oil price impacted on sentiment earlier in the month, and discussion finally settled at plus €20/tonne.
Buyers and sellers involved in the negotiations said most of the market, but not all, had reached split settlements at plus 2.25 cents/lb and plus 2.5 cents/lb for January.
Should the market settle at these levels, it would take PGP prices to 42.75-43.00 ($942-948/tonne) cents/lb and CGP prices to 41.25-41.50 cents/lb, according to ICIS pricing.
|LME Reference Price||1110||1160|
|May -07||1115|| |
The LME official or reference prices are the offer prices for the first forward delivery month - in this case March 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,
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