Shandong Yulong Auction: Buyers step back as demand weakens before holidays
The downturn underscored a cautious buying stance ahead of the Mid-Autumn Festival and National Day holiday, with converters limiting procurement to essential 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) |
3600 |
30 |
6880 |
$856 |
6910 |
$860 |
0.8% |
|
PPH Yarn (EXW) |
720 |
0 |
6830 |
$850 |
- |
- |
0.0% |
|
PPH Inj (EXW) |
270 |
0 |
6800 |
$846 |
- |
- |
0.0% |
|
PPH Film (EXW) |
600 |
0 |
6870 |
$855 |
- |
- |
0.0% |
|
PPH Film (FD) |
600 |
0 |
6880 |
$856 |
- |
- |
0.0% |
|
PPRC (EXW) |
351 |
0 |
7420 |
$924 |
- |
- |
0.0% |
|
PPRC (FD) |
1020 |
0 |
6950 |
$865 |
- |
- |
0.0% |
|
PPBC (FD) |
1500 |
480 |
6990 |
$870 |
6990 |
$870 |
32.0% |
|
PPBC (EXW) |
981 |
111 |
6890 |
$858 |
6940 |
$864 |
11.3% |
|
LL Film (FD) |
1200 |
600 |
7290 |
$907 |
7290 |
$907 |
50.0% |
|
HD Film (EXW) |
1050 |
150 |
7290 |
$907 |
7290 |
$907 |
14.3% |
|
HD Film (FD) |
2202 |
60 |
7350 |
$915 |
7350 |
$915 |
2.7% |
|
HD Blow (EXW) |
1800 |
0 |
7160 |
$891 |
- |
- |
0.0% |
|
HD Blow (FD) |
600 |
30 |
7290 |
$907 |
7290 |
$907 |
5.0% |
|
HD Yarn (FD) |
486 |
0 |
7560 |
$941 |
- |
- |
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 drew a muted response, with both PP and PE struggling to attract bids compared with the previous session. The downturn underscored a cautious buying stance ahead of the Mid-Autumn Festival and National Day holiday, with converters limiting procurement to essential volumes.
PP sales were particularly subdued. Core grades such as PPH yarn and film received little to no interest, while block copolymer (PPBC) registered only limited transactions, marking a sharp contrast with earlier in the week.
PE also lost momentum after previously showing relative strength. LLDPE film achieved partial sales but fell well short of the complete clearances seen on 16 September, while demand for HDPE grades collapsed from strong uptake to negligible levels.
Traders noted that Yulong’s offers were broadly in line with prevailing spot values, reducing their appeal against local discounts. “With cheaper volumes available on the ground and holidays approaching, buyers see little incentive to build stock from Yulong’s offers,” one market participant said.
Despite weak uptake, Yulong has not indicated any adjustment to operating rates. Its No. 2 ethylene cracker, with 1.5 million tons per year capacity, has recently started up smoothly, and commercial output is expected to begin this month. The producer aims to reach full PP and PE production in October, fuelling expectations of continued supply pressure once the holiday period ends.
Written by: Kat Yun Yun
Edited by: Aiman Haikal