LLDPE Forward Curve Methodology
The ICIS linear low density polyethylene (LLDPE) forward price assessment is based on information gathered through the working week up to 16:00 hours on Fridays in Singapore.
Timing: 12 months forward.
Trading terms: CFR Southeast Asia (non-dutiable basis)
Standard volume: 150 tonnes per contract per week.
All the following information is considered, not in ranking order:
1) Over the Counter (OTC) swap deals confirmed by at least two counter parties, and firm bids and offers. A bid or an offer is considered to be firm when it is confirmed by at least two market stakeholders. In the absence of bids, offers and/or deals for OTC contracts, it will be stated as so.
2) The LLDPE futures closing prices on Fridays on the Dalian Commodity Exchange.
Instrument function: Provides a basis for determining bid and offer prices for forward month contracts. It can also provide marked-to-market assessments for clearing over-the-counter and futures contracts.
Non-assessment days: When the LLDPE futures contract on the Dalian Commodity Exchange and/or the Brent crude futures contract on the Intercontinental Exchange are not traded.
Note: ICIS reserves the right to exercise editorial discretion in not including certain information in its assessment either for lack of clarity or lack of details required to confirm the information.
Density (at 20oC): 0.916-0.94
Vicat softening point ( oC): 101
Melting index (g/10 minutes): 0.13-2.5
Tensile strength (Mpa): 10-11
Tensile elongation at rupture (%): 811
Hardness (Rockwell D): 50-60
The forward price assessment is for prime LLDPE resin understood to be certified as such by a producer.