China’s polymers futures seen as stable due to thin demand

17 September 2009 11:17  [Source: ICIS news]

SINGAPORE (ICIS news)--China’s linear low density polyethylene (LLDPE) and polyvinyl chloride (PVC) futures were largely stable on Thursday due to thin trading and sluggish demand in the physical markets, traders and producers said.

November LLDPE futures, the most actively traded contract on Thursday, closed at yuan (CNY) 10,005/tonne ($1,464.86/tonne), or 2.5% lower than the previous settlement.

The November PVC contract fell by 2.9% to close at CNY6,760/tonne, according to data from the Dalian Commodity Exchange (DCE).

Crude benchmarks in New York made overnight gains of more than $1.50/bbl, while China’s main stock index, the Shanghai Composite Index, gained 2% to close at 3,060.26.

Sluggish demand and bearish sentiment in the physical markets, however, kept PVC futures players on the sidelines, according to a PVC producer.

Reflecting the thin trading activity, the trade volume of November PVC futures fell to its lowest since late July.

Only 30,041 PVC contracts changed hands on Thursday, which was just 6.8% of the 439,088 registered on 11 August.

($1 = CNY6.83)

For more on PE and PVC, visit ICIS chemical intelligence
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By: Ng Hun Wei
+65 6780 4359

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