19 August 2011 05:30 [Source: ICIS news]
SHANGHAI (ICIS)--China’s domestic linear low density polyethylene (LLDPE) prices fell by 2.4% on Friday as weaker LLDPE futures drove panic selling in the physical PE market, industry sources said on Friday.
Locally produced LLDPE was selling at yuan (CNY) 10,150-10,400/tonne ($1,588-1,628/tonne) EXWH (ex-warehouse) on Friday, about CNY250/tonne lower on average compared with Thursday’s transactions at CNY10,400-10,650/tonne EXWH.
The most actively traded January LLDPE contract on the Dalian Commodity Exchange (DCE) transacted at CNY10,690/tonne on Friday morning, CNY185/tonne or 1.7% lower from Thursday’s settlement price of CNY10,875/tonne, according to DCE's data.
Sharp falls in Thursday’s overnight equity trades in the US and Europe drove DCE’s LLDPE futures lower, local distributors said.
Some local distributors believe prices in the physical LLDPE market are unlikely to fall further because domestic supply remains tight as a result of planned maintenance at a few local plants in August and September.
The agricultural film production season due to begin at the end of August is also expected to support the domestic physical PE market, the local distributors said.
Additional reporting by Angie Li, Ingrid Fu and Lizzie Yu
($1 = CNY6.39)
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