China’s LLDPE futures rise 0.22% on firm crude prices

31 August 2011 12:47  [Source: ICIS news]

SINGAPORE (ICIS)--Linear low density polyethylene (LLDPE) futures on the Dalian Commodity Exchange (DCE) in China were slightly higher at the close of Wednesday’s trade, supported by crude prices hovering at about $89/bbl, market sources said.

The most actively traded January contract closed at yuan (CNY) 11,065/tonne ($1,734/tonne) on Wednesday, up CNY25/tonne or 0.22% higher from Tuesday’s settlement, DCE data showed.

About 1.04m tonnes of LLDPE or 416,612 contracts for January delivery were traded, according to DCE data.

Further price increases in the futures contracts are limited, with not much transaction going on in the physical PE market, according to Chinese brokers.

“Although crude futures have gained by $3/bbl compared to last week, the [LLDPE] futures contracts did not jump in tandem, but barely inched up by CNY175/tonne [this week]. The lacklustre physical market is dampening the futures [market],” a Shanghai-based broker said.

“The plastics consumption atmosphere [in China] remains dull,” the broker said.

($1 = CNY6.38)

By: Ong Sheau Ling
+65 6780 4359

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