LME Plastics: May prices higher despite crude falls

18 April 2007 13:49  [Source: ICIS news]

LONDON (ICIS news)--May plastics futures prices climbed higher on the London Metal Exchange on Wednesday despite lower crude values.

June and July offers for polypropylene (PP) were also higher but June and July offers for linear low density polyethylene (LLDPE) were down.

The LME's official LLDPE price gained $5 to£1,185/tonne while PP gained $10 to $1,300/tonne.

The May contracts had closed unchanged on Tuesday with LLDPE at $1,165/tonne and PP at $1,275/tonne.

LLDPE did not trade on Tuesday but 255 lots of PP were traded up to the 17:00 GMT close, according to broker reports. Each lot is 24.75 tonnes.

Crude futures prices weakened further on Wednesday with June Brent trading just above $65/bbl and May WTI slipping below $63/bbl.

Prices softened despite expectations that weekly US inventory data due out later on Wednesday would reveal a further decline in domestic gasoline stocks.

Date:		Contract:
18 April 2007		LLDPE				PP
LME reference price		1185				1300
Forward prices:		Bid		Offer		Bid		Offer
May 2007		1165		1185		1270		1300
June 2007		1185		1205		1270		1300
July 2007		1185		1205		1270		1300

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 = €0.74)

By: Staff Reporter
+44 20 8652 3214

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