Chinese May LLDPE futures fall by 0.33% on worries of local economy

05 March 2012 09:21  [Source: ICIS news]

SINGAPORE (ICIS)--China’s linear low density polyethylene (LLDPE) futures fell by 0.33% on 5 March amid worries about the country’s forecast of slow economic growth, an industry source said on Monday.

Premier Wen Jiabao said on Monday at a meeting with the country’s National People’s Congress that China will target an economic expansion of 7.5% this year, which is the lowest in eight years.

However, market players are expecting demand from the downstream agricultural films sector to be healthy as the fundamentals of the physical LLDPE market is stable.

As a result, the drop in LLDPE futures on 5 March is minimal, the industry source said.

May LLDPE futures, the most actively traded contract on the Dalian Commodity Exchange (DCE), closed at yuan (CNY) 10,465/tonne ($1,661/tonne) on 5 March, down by CNY35/tonne from the settlement price at CNY10,500/tonne on 2 March.

Around 1.06m tonnes of LLDPE, or 425,638 contracts, for delivery in May were traded, according to the DCE data.

($1 = CNY6.30)

By: Lizzie Yu

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