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Shandong Yulong Auction: Only LLDPE finds buyers as weak sentiment persistsShandong Yulong’s latest auction on 4 November concluded with limited participation, as deals were recorded only for LLDPE film. All PP and HDPE grades failed to attract buying interest amid persistently weak sentiment and uncompetitive price levels. |
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Product |
Auction Volume |
Deal Volume |
Auction Prices |
Deal Prices |
Deal % |
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|
CNY/ton |
USD/ton |
CNY/ton |
USD/ton |
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Combined and reported by CommoPlast |
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|
PPH Yarn (FD) |
600 |
0 |
6470 |
$804 |
- |
- |
0.0% |
|
PPBC inj (FD) |
600 |
0 |
6680 |
$830 |
- |
- |
0.0% |
|
PPRC inj (FD) |
900 |
0 |
7270 |
$904 |
- |
- |
0.0% |
|
LLDPE Film (FD) |
3600 |
2130 |
6900 |
$858 |
6910 |
$859 |
59.2% |
|
HDPE Yarn (EXW) |
300 |
0 |
7180 |
$892 |
- |
- |
0.0% |
|
HDPE Yarn (FD) |
600 |
0 |
7150 |
$889 |
- |
- |
0.0% |
|
HDPE Blow (EXW) |
600 |
0 |
7170 |
$891 |
- |
- |
0.0% |
|
HDPE Blow (FD) |
900 |
0 |
7170 |
$891 |
- |
- |
0.0% |
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UHMWPE (FD) |
316.8 |
0 |
7300 |
$907 |
- |
- |
0.0% |
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* Auction and Deal volumes are in tonnage * All USD equivalent prices only exclude the 13% value-added tax (VAT). They have not taken into account other costs that might incur in the selling process, i.e. import duty, customs clearances. |
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Shandong Yulong’s latest auction on 4 November concluded with limited participation, as deals were recorded only for LLDPE film. All PP and HDPE grades failed to attract buying interest amid persistently weak sentiment and uncompetitive price levels.
LLDPE film was the sole bright spot, achieving a deal ratio of around 59%, with transactions finalised at CNY6,910/ton (FD) — roughly CNY10/ton above the auction’s starting price. Market participants attributed the limited success to need-based demand in northern regions, supported by seasonal agricultural film requirements and relatively firmer LLDPE futures compared to PP.
A trader remarked, “The few LLDPE deals likely came from short-term agricultural demand. Overall sentiment is still fragile, and prices remain under pressure as the producer focuses more on specialty grades.”
Meanwhile, no transactions were recorded for PP or HDPE grades, reflecting buyers’ cautious stance and the availability of lower-priced spot materials elsewhere. Market feedback indicated that converters are refraining from bulk procurement until there are clearer signals of a price floor or stronger feedstock direction.
In plant developments, Shandong Yulong has recently converted its No. 2 HDPE unit (450,000 tons/year) to produce ultra-high molecular weight polyethylene (UHMWPE). The newly produced UHMWPE cargoes were also offered in this session but attracted no deals, underscoring the subdued market appetite across product lines.
Written: Kat Yun Yun
Edited: Aiman Haikal
Country
China
