China’s plastics futures rise on strong sentiment

09 October 2009 15:21  [Source: ICIS news]

SINGAPORE (ICIS news)--Chinese linear low density polyethylene (LLDPE) and polyvinyl chloride (PVC) futures, driven by strong market sentiment, traded as much as 4.8% higher than the previous settlement price, industry sources said on Friday.

The November LLDPE contract closed 4.8% higher at yuan (CNY) 10,215/tonne ($1,496/tonne), up CNY485/tonne from the settlement price on 30 September, which was the last day of trading before China closed for its National Day holidays, according to data from the Dalian Commodity Exchange (DCE).

The November PVC contract rose 1% to close at CNY6,395/tonne, buoyed mainly by the overnight rebound in crude benchmarks.

Strong international crude values, as well as local major PetroChina’s move to raise LLDPE offers by CNY100-200/tonne on Friday, boosted sentiment in both the physical and futures markets, futures brokers said.

Physical LLDPE trade, which this week was comprised of a few thousand tonnes of Asian material at $1,120-1,150/tonne CFR (cost and freight) China, also strengthened sentiment, local traders said.

The limited increase in PVC futures reflected the subdued demand and bearish sentiment in the physical market, a local trader said.

($1 = CNY6.83)

Additional reporting by Ng Hun Wei

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By: Chow Bee Lin
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