China LLDPE futures up 3% on feedstock price hikes

10 February 2011 14:34  [Source: ICIS news]

LONDON (ICIS)--China’s linear low density polyethylene (LLDPE) futures rose 3% on Thursday, extending Wednesday’s gains on the back of positive sentiment driven by increases in crude futures and Asia’s spot ethylene feedstock prices, local futures brokers said.

Liquidity focused on the May LLDPE futures contract which rose yuan (CNY) 360/tonne ($54.63/tonne) to close at CNY12,370/tonne, data from the Dalian Commodity Exchange (DCE) showed.

The interest rate hike announced on Tuesday was widely anticipated in the past weeks and many investors were concerned about its potential market dampening effect.

But now that the rate hike has been implemented, most investors believe they have seen the last bearish factor for February, said Jack Hua, petrochemical analyst of CITIC Newedge Futures in Shanghai.

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($1 = CNY6.59)

Author: Bee Lin Chow

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