China LLDPE futures fall 4% as crude slumps

22 September 2011 11:08  [Source: ICIS news]

SINGAPORE (ICIS)--China’s linear low density polyethylene (LLDPE) futures fell 4.1% on Thursday because of slumping crude prices, market sources said.

January LLDPE, the most actively traded contract on the Dalian Commodity Exchange (DCE), closed at yuan (CNY) 9,645/tonne ($1,509/tonne) on Thursday, down by CNY410/tonne or 4.1% lower from Wednesday’s settlement price.

About 3.12m tonnes of LLDPE or 1.25m contracts were traded for January delivery, according to DCE data.

NYMEX WTI crude futures were hovering at $83/bbl (€61/tonne) levels late Thursday afternoon in Asia, down by almost $3/bbl from Wednesday’s close.

“The physical market sentiment has become more bearish as the futures fell beyond the psychological line of CNY10,000/tonne mark, which is the second time within this week,” a Zhejiang-based futures broker said.

“The fear of eurozone crisis is intensifying, and also, many people are agreeing that US is already in [a] double-dip recession. The gloomy economic climate is depressing the plastics industry,” he added.

($1 = €0.73 / $1 = CNY6.39)

Read John Richardson and Malini Hariharan’s blog – Asian Chemical Connections

By: Ong Sheau Ling
+65 6780 4359

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