LME Plastics: PP drops back $10 to $1,290/tonne

20 April 2007 13:24  [Source: ICIS news]

LONDON (ICIS news)--Polypropylene (PP) futures prices eased back on the London Metal Exchange on Friday to the level seen earlier in the week, while linear low density polyethylene (LLDPE) prices were unchanged from Thursday.

The LME's official PP price lost $10 to $1,290/tonne while LLDPE remained at $1,200/tonne. Forward prices on PP were down also but unchanged on LLDPE.

May PP had closed up $5 at 1,290/tonne on Thursday with May LLDPE unchanged at $1,185/tonne.

Seventeen lots of PP traded until 17:00 GMT on Thursday but no LLDPE, according to broker reports. Each lot is 24.75 tonnes.

PE exports from the US have risen on the back of strong demand from China. US LLDPE and high density PE (HDPE) exports in the first two months of 2007 rose 84.4% and 73.3% respectively over the same period in 2006, according to the latest data from the US International Trade Commission (ITC).

If implemented, producer US PP price increases for April and May would total 12 cents/lb or 13 cents/lb, industry sources indicated.

European low density PE (LDPE) producers were eyeing increases for May business even before some sectors of the market had settled for April.

European PP producers were considering May price hikes this week as demand remained strong and availability limited, several suppliers said.

Homopolymer injection prices were close to €1,200/tonne ($1,622/tonne) FD (free delivered) NWE (northwest Europe) on a gross basis in mid-April, according to global chemical market intelligence service ICIS pricing.

Japan polymer exports rose in March.

The UK's Office of Fair Trading (OFT) said it had finally and unconditionally closed the case against the LME concerning the exchange's moves to cover Asia trading hours on the LME Select trading platform.

Date:		Contract:
20 April 2007		LLDPE				PP
LME reference price		1200				1290
Forward prices:		Bid		Offer		Bid		Offer
May 2007		1180		1200		1270		1290
June 2007		1185		1205		1270		1290
July 2007		1185		1205		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 = €0.74)

By: Staff Reporter
+44 20 8652 3214

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