China's PE futures slide 5% on double-dip recession fears

05 August 2011 03:31  [Source: ICIS news]

SINGAPORE (ICIS)--Linear low density polyethylene (LLDPE) futures on the Dalian Commodity Exchange (DCE) in China slid 5% on Friday morning as fears of another global economic recession triggered panic-selling, local futures brokers said.

The most actively traded January contract was transacted at yuan (CNY) 11,255/tonne ($1,748/tonne) on Friday morning, down CNY755/tonne or 5% lower from Thursday’s settlement at CNY11,845/tonne, DCE data showed.

According to the DCE’s trading rules, a transaction price established after a 5% fall from the preceding day’s settlement price becomes the floor price, and subsequent offers below this level are not accepted on the same trading day.

Concerns about a second downturn in the world economy led to sharp falls in crude futures and US equities overnight.

($1 = CNY6.44)

By: Chow Bee Lin
+65 6780 4359

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