China LLDPE futures up 2.2% on Sinopec’s cracker op rate cuts

02 November 2011 09:24  [Source: ICIS news]

SINGAPORE (ICIS)--China’s linear low density polyethylene (LLDPE) futures rose by 2.2% as Sinopec’s move to cut the operating rate at its crackers has strengthened the sentiment of investors, industry sources said on Wednesday.

January LLDPE futures, the most actively traded contract on the Dalian Commodity Exchange (DCE), closed at yuan (CNY) 9,660/tonne ($1,519/tonne), up by CNY215/tonne from Tuesday’s settlement price.

However, the production cuts at Sinopec’s crackers did not push prices significantly higher in the physical LLDPE market, as players’ main concern is the ongoing eurozone debt crisis, a local PE trader said.

LLDPE was selling at CNY9,400-9,850/tonne EXWH (ex-warehouse) in China’s domestic market, CNY50/tonne higher from Tuesday, according to data from Chemease, an ICIS service in China.

($1 = CNY6.36)

Additional reporting by Yu Jiao Jiao, Angie Li, Dong Yu Ling

For more on polyethylene, visit ICIS chemical intelligence
Read John Richardson and Malini Hariharan’s blog – Asian Chemical Connections

By: Chow Bee Lin
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