LME Plastics: Prices buoyed by upward pressure

13 April 2007 13:56  [Source: ICIS news]

LONDON (ICIS news)--Plastics futures prices rose on the London Metal Exchange on Friday as Asia naphtha hit a new record high and Brent crude reached a new peak for the year.

The LME’s linear low density polyethylene (LLDPE) and polypropylene (PP) official futures prices both gained $10, with LLDPE at $1,180/tonne and PP at $1,290/tonne. The increase followed the gains made in the Thursday official and closing prices.

The May contracts for both polymers had closed up on Thursday, LLDPE up $10 at $1,180/tonne and PP up $15 at $1,270/tonne.

Upward pressure on plastics continued as crude futures prices made further gains on Friday with May Brent hitting a new high for the year of $69.59/bbl before easing, and May WTI climbing over $64/bbl.

Asia’s open spec naphtha prices jumped to a fresh record high of $700-701/tonne CFR (cost and freight) Japan at the close of Asian business on Friday.

The plastics contracts had attracted greater trading interest towards the end of the working week but only two lots of LLDPE traded on Thursday and no PP, according to broker reports. Each lot is 24.75 tonnes.

The European PP market was firming in April as the month progressed, market sources said.

Date: Contract:
13 April 2007 LLDPE PP
LME Reference Price 1180 1290
Forward Prices: Bid Offer Bid Offer
May 2007 1150 1180 1260 1290
June 2007 1180 1200 1270 1290
July 2007 1180

1200

1270 1290

The LME official or reference prices are the offer prices for the first forward delivery month - in this case May 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 = €0.75)


By: Staff Reporter
+44 20 8652 3214



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