Chinese LLDPE spot prices increase on firmer futures, demand

30 January 2012 05:28  [Source: ICIS news]

SINGAPORE (ICIS)--China’s linear low density polyethylene (LLDPE) spot prices have increased by yuan (CNY) 50-100/tonne ($8-16/tonne), boosted by bullish LLDPE futures on the Dalian Commodity Exchange (DCE), industry sources said on Monday.

The LLDPE prices rose to CNY9,600-9,850/tonne EXWH (ex-warehouse) on Monday from CNY9,500-9,800/tonne EXWH on 20 January, according to data from Chemease, an ICIS service in China.

May LLDPE futures, the most actively traded contract on the DCE, closed at CNY10,285/tonne at noon on Monday, up by CNY240/tonne from the settlement price at CNY10,045/tonne on 20 January.

The LLDPE futures are firmer on increasing demand, following the Lunar New Year holiday on 22-28 January.

In addition, the spot prices may continue to rise in near term because some buyers are planning to purchase feedstock polyethylene (PE) after the Lunar New Year holiday on 22-28 January, local traders said.

($1 = CNY6.33)

Additional reporting by Angie Li, Rain Dong and Lizzie Yu

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By: Amy Yu

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