China LLDPE futures rise 1.42% on possible bank reserve cuts

18 January 2012 10:35  [Source: ICIS news]

SINGAPORE (ICIS)--China’s linear low density polyethylene (LLDPE) futures increased further by 1.42% on Wednesday as expectations that the government may loosen its monetary policy boosted investor confidence, industry sources said.

“The Chinese government is expected to reduce the bank reserve ratio, which in turn, will increase liquidity in the capital market,” Zhongliang Futures’ analyst Wang Zhai Rong said in Mandarin.

May LLDPE futures, the most actively traded contract on the Dalian Commodity Exchange (DCE), closed at yuan (CNY) 9,980/tonne ($1,579/tonne) on Wednesday, up by CNY140/tonne from the settlement price of CNY9,840/tonne on Tuesday.

Around 2.41m tonnes of LLDPE, or 962,650 contracts, for delivery in May were traded on Wednesday, according to DCE data.

($1 = CNY6.32)

By: Chow Bee Lin
+65 6780 4359

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