14 September 2010 07:24 [Source: ICIS news]
By Judith Wang
China would observe its annual Mid-Autumn Festival on 22-24 September and celebrate its week-long National Day holiday on 1-7 October.
“Most traders and producers will go home for holiday celebrations and retreat from the markets from next week. The markets will become quiet,” said Du Zhiqiang, a Shanghai-based analyst from Ping An Securities.
Petrochemical plants that would continue to run for the duration of the holidays would have to secure feedstocks this week, he said.
“Traders will buy some cargoes if prices are low and sell cargoes if prices are high at the moment,” Du said.
Buying sentiment this week got a boost from firming crude values and positive economic data out of
But actual trades would turn sluggish late next week, with normal activities only expected to resume in the middle of next month, when most market players return from the long holidays, industry sources said.
“More purchasing activities will happen after [the] holidays, so prices will likely start rising [then],” the trader said.
The recent strong appreciation of the yuan should be beneficial in helping
The country is the biggest importer of petrochemicals in
But the country’s exports may take a hit if the yuan continued to strengthen, which maybe the case in the months ahead, analysts said.
On Tuesday, the Chinese yuan strengthened to 6.7378 against the dollar – its highest level achieved since the peg against
“It indeed will hurt exports,” said Lu of Galaxy Asset Management..
With additional reporting by Dolly Wu
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