China LLDPE futures rise 0.46% as banks' reserve cut takes effect

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)

For more on linear low density polyethylene, visit ICIS chemical intelligence
Please visit the complete ICIS plants and projects database
Read John Richardson and Malini Hariharan’s blog –
Asian Chemical Connections

By: Amy Yu

AddThis Social Bookmark Button

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

Get access to breaking chemical news as it happens.
ICIS Global Petrochemical Index (IPEX)
ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index