10 November 2011 03:26 [Source: ICIS news]
SINGAPORE (ICIS)--China’s linear low density polyethylene (LLDPE) futures plunged by 5% on Thursday morning, prompting a halt in trades, as concerns over the eurozone debt crisis worsened on news of Italy’s soaring borrowing costs, industry sources said.
Financial markets in Europe plunged on Wednesday as the yield on benchmark 10-year Italian bonds soared above the 7% level, which was widely viewed as unsustainable.
May LLDPE futures, the most actively traded contract on the Dalian Commodity Exchange (DCE), was traded at yuan (CNY) 9,690/tonne ($1,528/tonne) on Thursday morning, CNY505/tonne lower from Wednesday’s settlement, according to DCE data.
Trading of the May contract was halted in accordance with the DCE’s trading rules. After a 5% fall from the preceding day’s settlement price, the transaction price becomes the floor price, and subsequent offers below this level are not accepted on the same trading day.
About 136,265 tonnes, or 54,506 May contracts, were traded at CNY9,690/tonne on Thursday morning, the data showed.
China’s spot LLDPE prices fell to CNY9,200-9,700/tonne on Thursday morning, CNY100-350/tonne lower from Wednesday, as the sharp price fall on the futures market triggered panic selling, local LLDPE traders said.
($1 = CNY6.34)
Additional reporting by Amy Yu
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