China LLDPE futures up 2.3% amid optimism over eurozone debts

04 November 2011 10:47  [Source: ICIS news]

SINGAPORE (ICIS)--China’s linear low density polyethylene (LLDPE) futures rose by 2.3% on Friday as the European Central Bank’s move to cut interest rates and optimism that a resolution for the eurozone sovereign debt crisis is in sight boosted investor sentiment, industry sources said.

Greece’s decision not to hold a referendum on a bailout package with the eurozone was seen as an indication that the eurozone debt problems are moving closer to a resolution, a Shanghai-based futures broker said.

January LLDPE futures, the most actively traded contract on the Dalian Commodity Exchange (DCE), closed at yuan (CNY) 9,780/tonne ($1,540/tonne) on Friday, up by CNY220/tonne from Thursday’s settlement price.

About 1.4m January contracts totalling about 3.4m tonnes were traded on Friday, according to DCE data.

A strong rebound of LLDPE prices in the domestic physical market also boosted investor sentiment, futures brokers said.

Imported LLDPE was selling at CNY9,350-9,800/tonne EXWH (ex-warehouse) this week, CNY100-800/tonne higher from last week, according to Chemease, an ICIS service in China.

($1 = CNY6.35)

By: Chow Bee Lin
+65 6780 4359

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