LME Plastics: PP and LLPDE futures prices fall

12 June 2007 14:00  [Source: ICIS news]

LONDON (ICIS news)--The official polypropylene (PP) futures price for July dropped $20 to $1,220/tonne on the London Metal Exchange (LME) on Tuesday as physical markets remained quiet.

 

Oil and naphtha prices were little changed after last week's more signficant price moves.

 

The LME's official linear low density polyethylene (LLDPE) price fell by $10 to $1,225/tonne.

 

The July PP contract closed down $15 on Monday to $1,215/tonne while LLDPE ended trading $5 up at $1,225/tonne.

 

Forty lots of PP were traded on Monday but no lots of LLDPE.

 

Total Petrochemicals’ PP output in Feluy, Belgium, was offline on Tuesday after storms led to an electrical outage on Sunday 10 June.

 

The share of PP imports in China is expected to fall by 2011 due to increased local production, said global polyolefins producer Basell.

 

China's domestic PP market softened this week but prices have been rising since May and local players remain positive about the market’s long-term prospects.

 

Maoming Petrochemical shut its 250,000 tonne/year low density polyethylene (LDPE) unit on Tuesday due to problems with the reactor.

 

Date:		Contract:
12 June 2007		LLDPE				PP
LME reference price		1225				1220
($ per tonne)
Forward prices		Bid		Offer		Bid		Offer
July 2007		1205		1225		1200		1220
August 2007		1205		1225		1200		1220
September 2007		1205		1225		1200		1220

 

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