30 January 2012 10:35 [Source: ICIS news]
SINGAPORE (ICIS)--China’s linear low density polyethylene (LLDPE) futures are up by 1.64% because of a bullish market outlook ahead of the peak production season for LLDPE film in March, industry sources said on Monday.
China’s May LLDPE futures, the most actively traded contract on the Dalian Commodity Exchange (DCE), closed at yuan (CNY) 10,210/tonne ($1,613/tonne) on the first trading day after the week-long Lunar New Year holiday, surging by CNY165/tonne or 1.64% from the settlement price of CNY10,045/tonne on 20 January.
Agricultural film production, which is a major LLDPE film resin application, typically peaks in March so the demand for feedstock will rise in tandem, said a shanghai-based futures broker.
“In addition, we have strong expectations that local [LLDPE] producers will adopt a firmer pricing policy in view of strong upstream [crude and propylene] feedstock costs, hence we will also target higher offers,” said a major Zhejiang-based trader.
Spot LLDPE prices in the Chinese domestic market rose by CNY100-150/tonne to CNY9,600-9,850/tonne on Monday, compared with the previous day’s levels at CNY9,500-9,700/tonne, according to traders in east China.
($1 = CNY6.33)
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