China May LLDPE futures up 0.54% on higher domestic spot offers

31 January 2012 10:14  [Source: ICIS news]

SINGAPORE (ICIS)--China’s linear low density polyethylene (LLDPE) futures rose by 0.54% on back of the firmer offers of local petrochemical producers, industry sources said on Tuesday.

China’s May LLDPE futures, the most actively traded contract on the Dalian Commodity Exchange (DCE), closed at yuan (CNY) 10,295/tonne ($1,632/tonne) on Tuesday, up by CNY55/tonne from the settlement price of CNY10,240/tonne on 30 January.

Around 1.55m tonnes of LLDPE, or 621,000 contracts, for delivery in May were traded on Tuesday, according to DCE data.

Chinese petrochemical giants Sinopec and PetroChina both raised their offers for LLDPE resin for most regions this week, further strengthening the positive outlook in both the futures and spot markets, according to market sources.

“We also raised our offers in tandem with rising feedstock [crude and propylene] costs, a major trader in northern China said.

Spot LLDPE prices in the Chinese domestic market rose by CNY50-100/tonne to CNY9,650-9,800/tonne on Tuesday, compared with the previous day’s levels at CNY9,600-9,700/tonne, the trader added.

($1 = CNY6.31)

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By: Belle Huo

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