05 December 2011 08:33 [Source: ICIS news]
SINGAPORE (ICIS)--China’s linear low density polyethylene (LLDPE) futures rose by 0.46% on Monday as the country’s first cut in banks’ reserve requirement in nearly three years takes effect, industry sources said.
The 50-basis point cut in the reserve requirement meant an infusion of nearly (CNY) 400bn ($63bn) of liquidity into the market, a trader said.
May LLDPE futures, the most actively traded contract at the Dalian Commodity Exchange (DCE), closed at yuan (CNY) 9,745/tonne on Monday, up by CNY45/tonne from last Friday’s settlement price of CNY9,700/tonne.
About 1.83m tonnes of LLDPE, or 730,796 May contracts for delivery in May, were traded, the data showed.
But the overall weakness in demand for LLDPE is likely to stay in the short term, said Hu Zhenglong, an analyst with brokerage GuangFa Futures.
($1 = CNY6.35)
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