China LLDPE futures fall 0.16% on weaker crude prices

01 November 2011 10:11  [Source: ICIS news]

SINGAPORE (ICIS)--China’s linear low density polyethylene (LLDPE) futures closed 0.16% lower on Tuesday as weaker crude prices hampered investor confidence, industry sources said.

The January LLDPE contract closed at yuan CNY 9,385/tonne ($1,476/tonne) on Tuesday afternoon, CNY15/tonne lower from Monday’s settlement, according to data from Dalian Commodity Exchange (DCE).

Investors retreated because of weaker crude prices, local futures brokers said.

However, earlier on Tuesday, a decline in the purchasing manager’s index (PMI) for October pushed the January LLDPE futures contract on the DCE to as high as CNY9,625/tonne.

The lower PMI is seen as an indication that China’s consumer price index for October is unlikely to reach a new high and hence the Chinese central bank will not introduce more credit-tightening measures, a Shanghai-based futures broker said.

“Investor sentiment was strengthened by the prospect of more liquidity,” the broker said.

($1 = CNY6.36)

For more on PE, visit ICIS chemical intelligence

By: Chow Bee Lin
+65 6780 4359

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