Shandong Yulong Auction: Discounted prices stimulate cautious buying
Shandong Yulong’s latest online auction session concluded with a marked uptick in deal volumes, underpinned by more competitive pricing and stabilising futures sentiment.
Shandong Yulong’s latest online auction session concluded with a marked uptick in deal volumes, underpinned by more competitive pricing and stabilising futures sentiment. Strategic need-based replenishments from downstream buyers helped lift participation, although overall market engagement remained measured.
|
Product |
Auction Volume |
Deal Volume |
Auction Prices |
Deal Prices |
Deal % |
||
|
CNY/ton |
USD/ton |
CNY/ton |
USD/ton |
||||
|
Combined and reported by CommoPlast |
|||||||
|
PPH Yarn (FD) |
750 |
750 |
7090 |
$876 |
7100-7130 |
$878-881 |
100.0% |
|
PPH Yarn (EXW) |
435 |
0 |
7100 |
$878 |
- |
- |
0.0% |
|
PPBC (FD) |
3381 |
1149 |
7160 |
$885 |
7160-7280 |
$885-900 |
34.0% |
|
PPBC (EXW) |
531 |
0 |
7140 |
$882 |
- |
- |
0.0% |
|
PPH Film (FD) |
90 |
30 |
7140 |
$882 |
7140 |
$882 |
33.3% |
|
PPH Film (EXW) |
300 |
0 |
7110 |
$879 |
- |
- |
0.0% |
|
HD Film (FD) |
360 |
360 |
7450 |
$921 |
7520-7530 |
$929-931 |
100.0% |
|
HD Film (EXW) |
300 |
300 |
7450 |
$921 |
7510-7520 |
$928-929 |
100.0% |
|
HD Yarn (FD) |
150 |
150 |
7850 |
$970 |
7860-7870 |
$971-973 |
100.0% |
|
LL Film (EXW) |
1785 |
1281 |
7250 |
$896 |
7250-7410 |
$896-916 |
71.8% |
|
LL Film (FD) |
2400 |
2250 |
7200 |
$890 |
7200-7520 |
$890-929 |
93.8% |
|
* 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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The auction featured price reductions ranging from CNY 30 to 100/ton compared to the previous session, making the offers more attractive and helping to unlock some latent buying interest. Notably, FD-grade PPH yarn, HD film, and HD yarn achieved full clearance, indicating robust demand in select downstream segments.
However, the broader sentiment remains cautious. Several traders interpreted the large auction volumes as a signal of Shandong Yulong’s ongoing inventory pressure following recent sluggish sales. Despite the improved conversion rates for certain grades, many market participants expect that further price cuts may still be necessary to sustain sales momentum and ease stock burdens.
Written: Kat Yun Yun
Edited: Rochelle Nguyen