China LLDPE futures close 3.45% higher on Daqing Petchem outage

03 December 2012 09:00  [Source: ICIS news]

bSINGAPORE (ICIS)--China’s linear low density polyethylene (LLDPE) futures closed 3.45% higher on Monday, in reaction to the unexpected shutdown of two polymer facilities on 30 November, industry sources said.

May LLDPE futures, the most actively traded contract on the Dalian Commodity Exchange (DCE), closed at yuan (CNY) 10,350/tonne ($1,661/tonne), up by CNY345/tonne from the settlement price of CNY10,005/tonne last Friday.

The contract hit a high of CNY10,405/tonne in the morning, up by 4% – the maximum price gain that can be generated for the day.

Around 2.08m tonnes of LLDPE or 831,892 contracts for delivery in May 2013 were traded on Monday, according to DCE data.

Market players turned cautious towards the afternoon trade, in view of continued weakness in downstream demand.

Daqing Petrochemical had to partially shut its 600,000 tonne/year cracker in Heilongjiang province, along with its two high density polyethylene (HDPE)/LLDPE plants with a combined capacity of 550,000 tonnes/year, following a fire on 30 November.

($1 = CNY6.23)

By: Lizzie Yu

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