26 July 2011 05:31 [Source: ICIS news]
SHANGHAI (ICIS)--China’s linear low density polyethylene (LLDPE) prices have risen by 2.8% as local distributors and producers have raised their offers amid concerns that domestic supply will tighten in August and September, industry sources said on Tuesday.
Local supply is expected to be tight because of scheduled maintenance at several local plants, they said.
The average offers of local producers hovered at around yuan (CNY) 10,900/tonne ($1,690/tonne) EXW (ex-works) on Tuesday morning, CNY125/tonne higher than a week ago, local distributors said.
Local distributors raised their offers in the retail market in response to the producers’ price hikes, selling spot cargoes at CNY10,950-11,200/tonne EXWH (ex-warehouse), according to Chemease, an ICIS service in China.
These were CNY300/tonne or about 2.8% higher from last Tuesday when transactions were at around CNY10,650-10,900/tonne EXWH, they said.
An uptrend in China’s LLDPE futures trade also boosted sentiment in the physical PE market, local distributors said.
The most actively traded January contract on the Dalian Commodity Exchange (DCE) was transacted at up to CNY12,210/tonne on Tuesday morning, CNY350/tonne higher than Tuesday’s opening price, according to DCE data.
($1 = CNY6.45)
Additional reporting by Angie Li, Lizzie Yu, Ingrid Fu
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