LME Plastics: PP drops $45 amid crude fall

29 May 2007 13:09  [Source: ICIS news]

LONDON (ICIS news)--Polypropylene futures prices dropped $45 on the London Metal Exchange on Tuesday, with the exchange’s official price falling to $1,215/tonne amid a dip in crude prices.

The exchange’s official linear low density polyethylene (LLDPE) price was down $5 at $1,215/tonne but official bid and offer prices for July and August LLDPE contracts were unchanged.

Crude prices fell on Tuesday, with July West Texas Intermediate (WTI) at $64.39/bbl, down $0.81/bbl. July Brent was at  $69.65/bbl, down $0.06/bbl from the previous close.

Indian polymer producers said late on Monday that they were looking to increase domestic offers for June cargoes by the end of this week, following a price reduction in May due to an appreciation in the value of the local currency.

China will become Asia’s largest importer of propylene this year, with an expected up to fourfold surge in demand soaking up surplus supplies from Korea and Taiwan, industry sources and traders said on Tuesday.

The June PP contract had closed down $30 at $1,240 on Friday, while the LLDPE contract was unchanged at $1,210. Ninety lots of PP were traded on Friday and 29 lots of LLDPE, according to broker reports.

Date:		Contract:
29 May 2007		LLDPE				PP
LME reference price		1215				1215
Forward prices		Bid		Offer		Bid		Offer
June 2007		1195		1215		1195		1215
July 2007		1210		1230		1210		1230
August 2007		1220		1240		1225		1245

 

The LME official or reference prices are the offer prices for the first forward delivery month – in this case June 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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