China PTA futures soar above 6%, trading halted

05 November 2010 02:06  [Source: ICIS news]

SINGAPORE (ICIS)--China’s purified terephthalic acid (PTA) futures prices soared 6.02% to yuan (CNY) 10,006/tonne ($1,502/tonne) on Friday morning amid extremely bullish sentiment, forcing a trading halt for second day in a row, market sources said.

An overnight jump in Dow Jones Indexes by 1.96% spurred bullish sentiment, pushing PTA futures to hit the 6% cap set on daily swings in values in just two minutes of trade at the Zhengzhou Commodity Exchange, they said.

Driven by the spikes, offers for Chinese domestic spot PTA jumped to CNY9,500-9,600/tonne ex-warehouse, a sharp increase of CNY400-500/tonne from Thursday.

Daily cap in the exchange increases by each successive day.

Trading was halted on Thursday after PTA futures went up by 4% and it was again stopped on Friday when futures exceeded the raised cap of 6% for the second day.

($1 = CNY6.66)

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By: Becky Zhang
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