Chinese distributors raise LLDPE offers on bullish market sentiment

17 September 2012 07:32  [Source: ICIS news]

SINGAPORE (ICIS)--Many distributors in China increased their offers for linear low density polyethylene (LLDPE) in the domestic market, driven by increasing domestic manufacturers’ EXW (ex-works) prices on Monday, marker players said.

The average offers of local producers were at around yuan (CNY) 11,100/tonne ($1,756/tonne) EXW on Monday morning, CNY125/tonne higher than the average offers on 14 September, local distributors said.

Local distributors raised their offers in the retail market, in response to the producers’ price hikes, at CNY11,050-11,500/tonne EXWH (ex-warehouse), said the local traders.

Their offers were CNY200-300/tonne higher than the prices on 14 September when transactions were at CNY10,850-11,200/tonne EXWH, according to Chemease, an ICIS service in China.

Moreover, the physical polyethylene (PE) market sentiments were boosted by the increasing Dalian Commodity Exchange’s (DCE) LLDPE future values, local distributors said.

The most actively traded January 2013 contract on the DCE was transacted at up to CNY11,040/tonne on Monday morning, CNY340/tonne higher than the settlement price on 14 September, according to DCE data.

($1 = CNY6.32)

By: Amy Yu

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