01 February 2011 10:33 [Source: ICIS news]
SINGAPORE (ICIS)--Linear low-density polyethylene (LLDPE) futures on China's Dalian Commodity Exchange (DCE) edged higher on Tuesday amid speculation that the domestic PE market would rebound on restocking activity after the Lunar New Year, local futures brokers said.
With crude futures trading at above $90/bbl (€66/bbl), some investors believe the cost-push factor would also drive petrochemical prices up further after the holidays, they added.
China will be closed for business between 2–8 February for the Lunar New Year holidays.
The retail prices of locally produced and imported LLDPE had been falling by yuan (CNY) 50–100/tonne ($8–15/tonne) per week over the past fortnight to hover at around CNY10,850–11,450/tonne EXWH (ex-warehouse) on 28 January, ICIS data showed.
The most actively traded May LLDPE contract closed at CNY12,005/tonne on Tuesday, according to data from the DCE. This was CNY125/tonne or 1% higher from Monday’s settlement price, with 183,784 contracts traded, the data showed.
($1 = €0.73, $1 = CNY6.61)
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