China’s LLDPE futures down 2.6% on credit concerns

31 August 2009 13:40  [Source: ICIS news]

SINGAPORE (ICIS news)--China’s linear low density polyethylene (LLDPE) futures fell 2.6% on Monday due to concerns that local banks would further tighten lending, local futures brokers said.

November LLDPE futures, the most actively traded contract on Monday, closed at yuan (CNY) 10,680/tonne ($1,561/tonne), down CNY290/tonne from last Friday’s settlement price, according to data from the Dalian Commodity Exchange.

There was talk that the new loans from August were much lower than previous months, and this spooked investors, a futures broker in south China said in Mandarin.

New bank loans in China could fall below CNY300bn in August, according to Chinese media reports.

Sharp falls in the futures market dampened sentiment in the physical LLDPE market, which slowed trading down, local LLDPE traders said.

"LLDPE is discussed at around CNY10,700/tonne ex-warehouse in eastern China today, down by around CNY200/tonne from last Friday," a local traders said.

($1 = CNY6.84)

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