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Trading on the Dalian Commodity Exchange received a major boost on July 31 from the strong debut of Linear Low Density Polyethylene contracts, or LLDPE. There were 36,330 LLDPE contracts worth 2.297 billion yuan that changed hands, with open interest standing at 3,708 contracts.
The strong debut boosted DCE's turnover today to 1.7 million contracts, or 57.541 billion yuan in value, the highest in the exchange's record.
The 10 LLDPE contracts opened higher before paring gains in later trading. Prices for all contracts closed higher than the basis of 12,200 yuan a ton on high prices of crude oil, the coming of consumption season for polyethylene and higher prices of other commodities.
Contracts for November delivery, the most actively traded, opened at 12,780 yuan a ton, with the highest price reaching 12,900 yuan, and the lowest hitting 12,435 yuan. The contract closed at 12,580 yuan a ton, up 380 yuan from the basis price. There were 21,555 contracts changed hands, with open interest standing at 2,428 contracts.
Spot prices for the commodity were presently between 12,300 yuan and 12,350 yuan in Ningbo area, so the futures prices today reflected the market's expectations, analysts said.
