China May LLDPE futures rebound 0.32%, investor confidence weak

22 November 2011 09:12  [Source: ICIS news]

SINGAPORE (ICIS)--China’s linear low density polyethylene (LLDPE) futures rebounded by 0.32% on 22 November despite growing concerns that the eurozone debt crisis may lead to a global economic recession, industry sources said on Tuesday.

“The rebound in futures was notionally corrected after the continued [decline] during the last several days,” a Shanghai-based futures broker said.

“The market outlook is still unclear amid the current prevailing bearish sentiment,” the broker added.

“We will remain at the sidelines and are not willing to buy cargoes from both the spot and futures markets as the prices will probably fall further,” a Zhejiang-based major importer said.

“This is because of the persistently weak demand amid the worsening eurozone outlook,” the importer added.

May LLDPE futures, which are the most actively traded contract on the Dalian Commodity Exchange (DCE), closed at yuan (CNY) 9,450/tonne ($1,486/tonne) on 22 November, up by CNY30/tonne from the settlement price at CNY9,420/tonne on 21 November, DCE data showed.

Around 2.62m tonnes of LLDPE, or 1.05m contracts, were traded for delivery in May, according to the data.

($1 = CNY6.36)

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By: Belle Huo

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