China May LLDPE futures fall by 2.04% on European debt crisis

15 December 2011 10:24  [Source: ICIS news]

SINGAPORE (ICIS)--China’s linear low density polyethylene (LLDPE) futures fell by 2.04% on Thursday as the soaring concerns that the expanded eurozone debit crisis would be likely lead to the second downturn in global economy, industry sources said.

Crude futures fell sharply on Wednesday, leading the spot and futures LLDPE markets to decline, the sources added.

On 14 December, NYMEX WTI crude futures closed at $94.95/bbl, down by $5.19/bbl from 13 December.

May LLDPE futures, the most actively traded contract on the Dalian Commodity Exchange (DCE), closed at yuan (CNY) 9,145/tonne ($1,435/tonne) on Thursday, down by CNY190/tonne from the settlement price of CNY9,335/tonne on 14 December.

Around 3.08m tonnes of LLDPE, or1.23m contracts, were traded for delivery in May, according to the data.

In the domestic market, spot LLDPE prices fell by CNY100/tonne to CNY8,900-9,200/tonne, from the previous day’s levels at CNY9,000-9,300/tonne, local LLDPE traders in east China said.

($1 = CNY6.37)

By: Belle Huo

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