China plastics futures lower on sluggish physical demand

21 October 2009 11:35  [Source: ICIS news]

SINGAPORE (ICIS news)--China’s linear low density polyethylene (LLDPE) and polyvinyl chloride (PVC) futures traded 0.8-2.0% lower on Wednesday as market players took cues from sluggish demand in the physical markets as well as softer crude values.

The January LLDPE contract shed yuan (CNY) 80/tonne to close at CNY10,425/tonne ($1,526/tonne), 0.8% lower than the 20 October settlement price, according to data from the Dalian Commodity Exchange (DCE).

The January PVC contract lost 2.0% from the previous settlement level to close at CNY6,740/tonne.

Crude futures, meanwhile, continued to weaken on Wednesday afternoon, losing 84 cents to $78.28/bbl following a larger-than-expected rise in crude stocks in the US.

Softer crude values, coupled with sluggish physical demand, convinced buyers in stay on the sidelines of the paper market for now, a PVC trader said.

($1 = CNY6.83)

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By: Ng Hun Wei
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