12 October 2010 10:35 [Source: ICIS news]
SINGAPORE (ICIS)--Linear low density polyethylene (LLDPE) futures on the Dalian Commodity Exchange (DCE) lost upward momentum on Tuesday as talk of a bank reserve hike circulating in the market dented investor confidence, local futures brokers said.
The most actively traded January LLDPE contract closed yuan (CNY) 120/tonne ($18/tonne) or 1% lower at CNY11,330/tonne on Tuesday, after rising by CNY450/tonne or 4.1% on Monday, according to DCE data.
The Chinese central bank raised the required reserve ratios of six major local banks by 50-basis-point to 17.5% for two months, according to local media reports.
Some brokers believe a weakening in international crude futures also contributed to the bearish sentiment in the PE futures market.
($1 = CNY6.67)
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