CommoPlast Article

Product	Auction Volume	Deal Volume	Auction Prices		Deal Prices		Deal %
Product	Auction Volume	Deal Volume	CNY/ton	USD/ton	CNY/ton	USD/ton	Deal %
*Combined and reported by CommoPlast*
LLDPE Film (FD)	1353	30	6590	$828	6650	$836	2.2%
HDPE Film (FD)	600	60	7090	$891	7090	$891	10.0%
HDPE Film (EXW)	600	30	7050	$886	7050	$886	5.0%
HDPE Blow (FD)	600	0	6700	$842	-	-	0.0%
HDPE Yarn (FD)	300	0	7140	$898	-	-	0.0%
* 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.

Shandong Yulong’s latest auction saw muted participation on Tuesday, weighed down by weaker futures and a generally soft local market environment.

Auction prices for LLDPE and HDPE were set CNY 50–260/ton ($7–37/ton) higher than the previous session late last week, prompting resistance from buyers, according to market participants. The firm offers contrasted with the broader market, where discounts were readily available, further limiting buying interest.

A market source noted that Yulong had issued guidance to distributors and customers last week, urging the avoidance of unhealthy price competition. “Yulong’s auction prices were already relatively uncompetitive, and the latest upward adjustment has further eroded appetite,” the source said. “With local prices under pressure and discounts available elsewhere, sustaining sales at these levels will be challenging.”

Currently, the lower end of the spot market for LLDPE and HDPE film stands at CNY 6,500/ton and CNY 7,000/ton EXW China, respectively. Many auction participants indicated they would wait for potential price cuts, as they doubt the market can hold at higher levels, reducing their willingness to engage in the Yulong auction.

Shandong Yulong Auction: Higher offers face pushback amid weak market sentiment