05 August 2011 05:06 [Source: ICIS news]
SHANGHAI (ICIS)--China’s linear low density polyethylene (LLDPE) prices fell by 3.4% on Friday morning, as sharp falls in the Dalian Commodity Exchange’s (DCE) futures trade triggered panic selling in the physical LLDPE market, local distributors said.
Locally produced LLDPE was offered at yuan (CNY) 10,500-10,900/tonne ($1,630-1,693/tonne) EXWH (ex-warehouse) on Friday, CNY375/tonne or 3.4% lower from Thursday’s offers at CNY10,850-11,300/tonne EXWH, according to Chemease, an ICIS service in China.
A weak futures market triggered a supply surge in the physical LLDPE market, as many local distributors released their cargoes into the physical market after closing their positions in the futures trade, local distributors said.
Most local distributors could afford to off load their physical cargoes at lower prices as a persistent price uptrend in July had already widened their margins considerably, they said.
Additional reporting by Angie Li, Ingrid Fu and Lizzie Yu
($1 = CNY6.44)
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