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Shandong Yulong’s 25 November auction concluded on another subdued note, with only 81 tons of HDPE blow moulding changing hands as buyers remained cautious amid ample spot supply. Other grades, including LLDPE film, HDPE film, and HDPE yarn, drew no bids, reinforcing the muted tone across the domestic resin market.

The absence of PP offers triggered speculation that the producer may be prioritising selective offline discussions rather than channelling larger volumes through the auction platform. Market participants said buyers see little urgency to procure from Yulong, given the wide availability of competitively priced cargoes in the open market.

“The auction numbers are not actually expensive,” a trader said. “But when pricing sits within the general market range, there’s no clear advantage. Buyers are only stepping in when the value is compelling, and right now they’re finding better deals elsewhere.”

Industry sources added that Yulong may be operating under margin pressure, limiting its flexibility to offer deeper discounts to attract interest. Without more aggressive adjustments, participation is expected to remain thin as converters continue purchasing only to meet immediate needs.

With downstream demand still soft and sentiment fragile, the market remains opportunistic and cost-driven. Unless Yulong sharply reduce its offers or market fundamentals shift meaningfully, trading activity is likely to stay subdued in the near term.

Written by: Kat Yun Yun
Edited by: Aiman Haikal

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China