China LLDPE futures up 0.2% as oil prices spike on Iran tensions

08 November 2011 11:19  [Source: ICIS news]

SINGAPORE (ICIS)--China’s linear low density polyethylene (LLDPE) futures rose by 0.2% on Tuesday on speculative activity triggered by the geopolitical tensions over Iran’s nuclear programme, industry sources said.

BRENT crude rose by more than $1/bbl in late Tuesday, hovering at above $115/bbl on concerns that the geopolitical tensions could lead to disruption of crude supply.

There are also concerns that the Middle East’s LLDPE exports to China will be hampered, the sources said.

January LLDPE futures, the most actively traded contract on the Dalian Commodity Exchange (DCE), was traded as high as yuan (CNY) 9,720/tonne ($1,531/tonne) on Tuesday, according to DCE data, but it subsequently fell as investors took profit, a Shanghai-based futures broker said.

The January contract closed at CNY9,640/tonne on Tuesday, up by CNY20/tonne from Monday’s settlement price, according to DCE data.

About 2.13m tonnes or 853,074 January LLDPE contracts were traded on Tuesday, the data showed.

($1 = CNY6.35)

By: Chow Bee Lin
+65 6780 4359

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