China September LLDPE futures gain 1.95% on rising spot prices

21 May 2014 09:12 Source:ICIS News

SINGAPORE (ICIS)--China’s linear low density polyethylene (LLDPE) futures rose by 1.95% on Tuesday, in line with gains in spot domestic prices of the polymer, industry sources said.

September LLDPE futures, the most actively traded contract at the Dalian Commodity Exchange (DCE), closed at yuan (CNY) 11,225/tonne ($1,799/tonne), up by CNY215/tonne from Tuesday’s settlement.

Around 1.71m tonnes of LLDPE or 682,278 contracts for delivery in September were traded on 21 May, the DCE data showed.

Domestic spot LLDPE prices in east China inched up CNY50/tonne to CNY11,650-11,750/tonne on 21 May, according to Chemease, an ICIS service in China.

Local distributors were unwilling to lower their offers as major producer Sinopec cut its LLDPE allocations to the market on Wednesday, traders said.

($1 = CNY6.24)

By Angie Li