LME Plastics: LLDPE down $5 in quiet trading

02 February 2007 14:04  [Source: ICIS news]

LONDON (ICIS news)--Plastics futures trading on the London Metal Exchange continued to be slow on Friday as trading on the new front month contract moved into its second day.

The exchange’s official price for linear low density polyethylene (LLDPE) dropped by $5 to $1,105/tonne (€847/tonne). The polypropylene (PP) official price was unchanged at $1,160/tonne.

The official or reference prices are offer prices for the new front month of March.

March LLDPE closed at $1,100/tonne on Thursday and March PP at $1,150/tonne. Ten lots of PP were traded on Thursday but no LLDPE, according to brokers. Each lot is 24.75 tonnes.

The official figures on Friday showed narrower bid/offer spreads on both contracts for March, April and May, while both crude and naphtha edged higher on Friday.

Northeast Asian ethylene spot prices lost further ground this week as recent high price levels were judged unsustainable due to much weaker derivatives markets, Asian ethylene traders said on Friday.

Formosa Petrochemical Corp might again delay the start-up of its largest cracker to the fourth quarter and reduce its capacity due to land shortage, sources close to the project said.

The LME was expected to reveal long-awaited details of the introduction of spot elements for its plastics contracts and three or more regional plastics contracts.

Date: Contract:
02 Feb-07 LLDPE PP
LME Reference Price 1105 1160
Forward Prices: Bid Offer Bid Offer
March -07 1095 1105 1150 1160
April  -07 1110 1120 1150 1160
May -07 1120

1130

1150 1160

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, Singapore and Houston.

($1 = €0.77)


By: Staff Reporter
+44 20 8652 3214



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