China LLDPE film offers increase by $20/tonne on better sentiment

01 December 2011 10:57  [Source: ICIS news]

SINGAPORE (ICIS)--Offers for linear low density polyethylene (LLDPE) film imports into China increased by as much as $20/tonne (€15/tonne) on Thursday, on hopes that the credit crunch in the country will soon ease, market sources said.

Prices for December and prompt LLDPE film shipments were quoted at $1,180-1,200/tonne CFR (cost and freight) China Main Port (CMP), they said.

In the week ending 25 November, the average LLDPE film prices were assessed at $1,180/tonne CFR China Main Port, down $20-40/tonne or 2.5% lower from the previous week, ICIS reported.

China’s central bank announced late on Wednesday that effective 5 December, the reserve requirement for banks will be cut by 50 basis points.

The move, which possibly marks an end to China's monetary tightening policy, lifted the sentiment in the futures market, allowing the LLDPE futures traded on the Dalian Commodity Exchange to close 2.6% higher on Thursday.

Chinese traders are hopeful that the positive sentiment will sustain, to draw converters forward to stock up their inventories.

Some Middle East producers offered LLDPE December lots at $1,160-1,180/tonne CFR CMP, largely unchanged from last week, while southeast Asian producers offered cargoes, exempted from import duty of 6.5%, at $1,240-1,270/tonne CFR China Main Port.  

($1 = €0.74)

Read John Richardson and Malini Hariharan’s blog – Asian Chemical Connections

By: Ong Sheau Ling
+65 6780 4359

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly