China’s plastics futures fall on weak crude, physical trade

24 September 2009 12:38  [Source: ICIS news]

SINGAPORE (ICIS news)--China linear low density polyethylene (LLDPE) and polyvinyl chloride (PVC) futures traded as much as 2% lower on Thursday due to sharply lower overnight crude values and weak demand in the physical markets, industry sources said.

Crude benchmarks in New York were down $2.79/bbl to settle at $68.97/bbl on 23 September.

The November PVC contract fell by 2% to close at yuan (CNY) 6,520/tonne ($955/tonne), according to data from the Dalian Commodity Exchange (DCE).

The November LLDPE contract closed at CNY9,630/tonne, which was down by CNY180/tonne, or 1.8%, from the previous day’s settlement price, according to DCE data.

Falling import prices and the domestic physical market further dampened sentiment in the LLDPE futures trade, futures brokers said.

On 23 September, local major PetroChina dropped its LLDPE offers in eastern and northeast China by CNY300-350/tonne, the brokers said.

Imported LLDPE was assessed at $1,170-1,230/tonne CFR (cost and freight) China for the week ended 18 September, down $20-40/tonne from the previous week, according to global chemical market intelligence service ICIS pricing.

($1 = CNY6.83)

Additional reporting by Ng Hun Wei

For more on polyethylene and PVC, visit
ICIS chemical intelligence
See John Richardson’s Asian Chemical Connections Blog
To discuss issues facing the chemical industry go to ICIS connect

By: Chow Bee Lin
+65 6780 4359

AddThis Social Bookmark Button

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly

Get access to breaking chemical news as it happens.
ICIS Global Petrochemical Index (IPEX)
ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index