China’s LLDPE prices fall 0.74% on bearish futures

07 May 2012 05:16  [Source: ICIS news]

SINGAPORE (ICIS)--China’s linear low density polyethylene (LLDPE) prices fell by 0.74% on Monday morning as sharp falls in LLDPE futures weakened selling sentiment in the physical PE market, local distributors said.

Locally produced LLDPE was sold at yuan (CNY) 9,800-10,300/tonne ($1,558-1,638/tonne) EXWH (ex-warehouse) in the morning, down by CNY50-100/tonne from CNY9,900-10,350/tonne EXWH on 4 May, according to Chemease, an ICIS service in China.

Liquidity on Dalian Commodity Exchange’s (DCE) LLDPE futures was focused on the September contract, which closed at CNY9,985/tonne at noon on 7 May, down by CNY300/tonne from the settlement price at CNY10,285/tonne on 4 May, according to DCE data.

Traders lost confidence in the physical PE market and reduced their offers to offload their inventories, said distributors in south China.

Traders in east China said their inventories were at mid-to-low levels after selling many cargoes in the past two weeks and thus they were inclined to purchase some low-priced cargoes.

($1 = CNY6.29)

Additional reporting by Lizzie Yu, Doreen Zhao and Rain Dong

By: Amy Yu

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly