Shandong Yulong Auction: Weak deals dominate ahead of weekend as market remains unconvinced
The only exception was HDPE injection, which appeared for the first time in the auction but registered only a handful of trades on very limited volumes.
|
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) |
450 |
0 |
7090 |
$874 |
- |
- |
0.0% |
|
PPH Yarn (EXW) |
465 |
0 |
7100 |
$875 |
- |
- |
0.0% |
|
PPH Inj (EXW) |
351 |
0 |
7120 |
$878 |
- |
- |
0.0% |
|
PPH Inj (FD) |
150 |
30 |
7150 |
$881 |
7150 |
$881 |
20.0% |
|
PPH Film (EXW) |
180 |
0 |
7100 |
$875 |
- |
- |
0.0% |
|
PPH Film (FD) |
300 |
0 |
7130 |
$879 |
- |
- |
0.0% |
|
PPBC (FD) |
240 |
30 |
7240 |
$892 |
7290 |
$899 |
12.5% |
|
PPBC (EXW) |
691 |
54 |
7200 |
$887 |
7200 |
$887 |
7.8% |
|
HD Inj (EXW) |
120 |
120 |
7320 |
$902 |
7330-7340 |
$903-904 |
100.0% |
|
HD Blow (EXW) |
408 |
30 |
7320 |
$902 |
7390 |
$911 |
7.4% |
|
HD Blow (FD) |
900 |
60 |
7390 |
$911 |
7390 |
$911 |
6.7% |
|
HD Yarn (FD) |
600 |
120 |
7750 |
$955 |
7750 |
$955 |
20.0% |
|
LL Film (EXW) |
1260 |
150 |
7360 |
$907 |
7400 |
$912 |
11.9% |
|
LL Film (FD) |
600 |
0 |
7370 |
$908 |
- |
- |
0.0% |
|
mPE (FD) |
300 |
0 |
8070 |
$995 |
- |
- |
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. |
|||||||
Auction activity at Shandong Yulong was notably subdued on Thursday, with deal volumes falling across nearly all PP and PE grades. The only exception was HDPE injection, which appeared for the first time in the auction but registered only a handful of trades on very limited volumes.
Participants attributed the weak turnout to a combination of soft sentiment ahead of the weekend and auction prices that were seen as uncompetitive. Offers for most grades were reportedly CNY20–60/ton higher than Tuesday’s session, further discouraging participation in a market already weighed down by sluggish demand.
“The market tone was already weak in the morning, and the higher auction prices only made it harder to conclude deals,” a trader commented. “Buyers are reluctant to commit at current levels, especially with no clear signs of a demand recovery and the weekend approaching.”
PP remained under heavier pressure than PE, both in terms of buying interest and concluded volumes. “The PP market has been showing more weakness than PE,” a participant noted. “Export sales have slowed, local demand is quiet, and with new domestic capacities expected to come online soon, PP could remain under pressure in the near term. At this point, we’re limiting purchases to essential needs to minimise exposure.”
With sentiment still fragile and expectations of increased PP supply ahead, market players remain cautious. Thursday’s auction results reflect a broader trend of risk-averse buying and a market driven more by necessity than confidence.
Written: Kat Yun Yun
Edited: Farid Muzaffar