LME Plastics: All regions push higher

07 January 2008 14:28  [Source: ICIS news]

LONDON (ICIS news)--Plastics future prices moved up sharply on the London Metal Exchange (LME) last week although trading volumes remained low and interest was thin towards the end of the week. Friday offical prices were unchanged from Thursday.

Regional Europe polypropylene (PP) prices moved higher across the week with the Europe January price up $105 (€71) to $1,700/tonne. Regional Asia and North America PP prices were up also. 

Linear low density polyethylene (LLDPE) cash prices in Europe increased by $60 to $1,570/tonne with LLDPE Asia and North America up across the cash, January and February contracts.

 

The table* shows the Friday official prices for the LME plastics contracts. These are two forward monthly prices for each contract and cash prices which are two days forward.

PP and LLDPE futures contract turnover halved year-on-year in 2007 to a total of 14,305 lots (equivalent to 354,063 tonnes), the LME said on Friday.

Upward pressure on prices continued to be felt in the cash markets.

Prices of Indian imports of PE, PP and polyvinyl chloride (PVC) had risen by up to 4.7% in two weeks on extremely limited supply, rising feedstock costs and strengthening sentiment in China, suppliers, traders and end-users said on Monday.

However, Iran will add 1.2m tonnes/year of capacity split between the Jam Petrochemical and Arya Sasol complexes when they become fully operational by the end of the Iranian calendar year on 19 March, National Petrochemical Co (NPC) said.

NPC deputy Reza Afshin added the annual polymer output of the country would stand at 5m tonnes in the first half of the next Iranian year when all its projects come on stream.

Saudi Advanced Polypropylene Co (APPC) said its 450,000 tonne/year PP plant at Jubail Industrial City will start production as scheduled in the first quarter.

Taiwan Polypropylene plans to shut its 400,000 tonne/year PP plant at Kaohsiung around 16 January for turnaround according to a company source.

LME Plastics: prices 

Date:	4 Jan
	PP
$ per tonne	Global	Asia	Europe	North America
Cash (B)	1,390	1,410	1,665	1,490
Cash (S)	1,410	1,415	1,690	1,500
Jan (B)	1,390	1,410	1,670	1,490
Jan (S)	1,410	1,415	1,700	1,500
Feb (B)	1,390	1,410	1,685	1,490
Feb (S)	1,410	1,415	1,715	1,500
	LLDPE
	Global	Asia	Europe	North America
Cash (B)	1,420	1,510	1,550	1,420
Cash (S)	1,430	1,530	1,570	1,430
Jan (B)	1,420	1,510	1,420	1,420
Jan (S)	1,430	1,530	1,430	1,430
Feb (B)	1,420	1,510	1,420	1,420
Feb (S)	1,430	1,530	1,430	1,430

B = buyers

S = sellers

 

*The basis on which the LME makes available official prices for plastics has changed. ICIS news will continue to report on the LME numbers but day-earlier figures will be tabulated.

 

($1 = €0.68)

 

By: Staff Reporter
+44 20 8652 3214

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