China's LLDPE/PTA futures drop 4-5% on crude price fall

07 June 2010 04:58  [Source: ICIS news]

SINGAPORE (ICIS news)--China’s linear low density polyethylene (LLDPE) and purified terephthalic acid (PTA) futures broke 4-5% down limit from the previous settlement on Monday morning due to a plunge in crude values and raised concerns on Europe’s debt issues, trader said.

“The futures market is under panic sentiment today (Monday) on the back of multiple negative news over the weekend,” said a source with futures brokerage Wanda Futures.

Trading of September LLDPE futures on the Dalian Commodity Exchange (DCE) was stopped right after it opened at 9:00am local time (01:00 GMT) after falling by 5% to yuan (CNY) 9,415/tonne ($1,378/tonne), according to data from the DCE.

Trading of September PTA futures on the Zhengzhou Commodity Exchange (ZCE) was also halted at around 11:00am (03:00 GMT) after falling by 4% to CNY7,090/tonne ($1,038/tonne), according do ZCE data.

According to the rules of the two exchanges trading is stopped when prices fall by 4% or 5% from the previous settlement price.

($1 = CNY 6.83)

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By: Becky Zhang
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