Shandong Yulong Auction: LLDPE outshines PP as discounts spur buying
In contrast, PP transactions remained subdued despite steeper discounts, reflecting weak downstream demand and plentiful supply.

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) |
3150 |
1560 |
6800 |
$846 |
6800-6830 |
$846-850 |
49.5% |
PPH Inj (EXW) |
270 |
0 |
6770 |
$843 |
- |
- |
0.0% |
PPRC (FD) |
420 |
54 |
7370 |
$917 |
7370 |
$917 |
12.9% |
PPBC (FD) |
3591 |
540 |
6910 |
$860 |
6930-7000 |
$863-871 |
15.0% |
PPBC (EXW) |
600 |
0 |
6860 |
$854 |
- |
- |
0.0% |
LL Film (FD) |
1920 |
1710 |
7200 |
$896 |
7200-7260 |
$896-904 |
89.1% |
HD Film (FD) |
1767 |
111 |
7450 |
$927 |
7450-7480 |
$927-931 |
6.3% |
HD Blow (EXW) |
600 |
150 |
7100 |
$884 |
7100 |
$884 |
25.0% |
HD Blow (FD) |
1005 |
555 |
7220 |
$899 |
7220-7290 |
$899-907 |
55.2% |
HD Yarn (EXW) |
300 |
60 |
7430 |
$925 |
7430 |
$925 |
20.0% |
HD Yarn (FD) |
978 |
90 |
7490 |
$932 |
7490 |
$932 |
9.2% |
* 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 higher participation, with lower offers stimulating selective replenishment. LLDPE once again outperformed PP, extending the demand gap observed in recent weeks.
Auction prices were cut by CNY30–100/ton from last Thursday, encouraging higher deal volumes across several grades. LLDPE film recorded nearly 90% clearance, underpinned by steady requirements from packaging and agricultural sectors.
In contrast, PP transactions remained subdued despite steeper discounts, reflecting weak downstream demand and plentiful supply.
“Discounted prices can attract deals, but only on a need-to basis. With ample supply, customers see no urgency to purchase beyond that,” one trader commented.
Attention is now turning to Yulong’s production outlook. The producer is preparing to raise PP and PE operating rates in October following the smooth start-up of its No. 2 cracker, which adds 1.5 million tons per year of ethylene capacity. Market participants expect the expansion to intensify supply pressure after the holidays, keeping the near-term outlook cautious.
Written by: Kat Yun Yun
Edited by: Aiman Haikal