China’s Jan ‘13 LLDPE futures dip 2.65% on bearish economic outlook

15 October 2012 10:24  [Source: ICIS news]

SINGAPORE (ICIS)--China’s linear low density polyethylene (LLDPE) futures fell by 2.65% on Monday, as market participants are pessimistic about the country’s economic growth after the release of official data.

China’s annual consumer price index (CPI) – a main gauge of its inflation rate – dropped to 1.9% in September from 2.0% in August, according to data from the country’s National Bureau of Statistics (NBS) on Monday.

The country’ monthly producer price index (PPI) – a gauge of wholesale prices – fell by 3.6% in September year on year, official data showed.

The figures have lowered market players' expectations that the country’s economic growth will improve in the fourth quarter, a broker said.

January LLDPE futures – the most actively traded contract on the Dalian Commodity Exchange (DCE) – closed at yuan (CNY) 10,190/tonne ($1,625/tonne), down by CNY270/tonne from the settlement price of CNY10,460/tonne on 12 October.

Around 1.19m tonnes of LLDPE, or 474,772 contracts, for delivery in January were traded on Monday, according to DCE data.

($1 = CNY6.27)

By: Rain Dong

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