China May LLDPE futures up by 1.24% on firm crude prices

09 January 2012 09:51  [Source: ICIS news]

SINGAPORE (ICIS)--China’s linear low density polyethylene (LLDPE) futures increased by 1.24%, boosted by firm upstream crude oil prices and stronger market confidence, industry sources said on Monday.

May LLDPE futures, the most actively traded contract on the Dalian Commodity Exchange (DCE), closed at yuan (CNY) 9,810/tonne ($1,557/tonne) on Monday, up by CNY120/tonne from the settlement price of CNY9,690/tonne on 6 January.

Around 1.62m tonnes of LLDPE, or 0.65m contracts, were traded for delivery in May, according to the data.

Chinese Premier Wen Jiabao urged the nation's financial sector to do more to support entrepreneurs and industries as well as strengthen its capability in supporting the economy at the National Financial Work Conference on 6 January, sources said.

Local traders in eastern region said that Wen’s speech “definitely strengthens” their confidence in their outlook on LLDPE prices, despite the upcoming Lunar New Year holiday on 22-28 January when players typically retreat from the market.

This is because of the possibility that banks will increase lending to the industry in 2012, they added.

($1 = CNY6.30)

By: Belle Huo

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