Shandong Yulong Auction: No PP offered, PE deals struggle amid weak sentiment

Shandong Yulong’s latest auction on 9 October featured no PP offers, with the producer providing no formal explanation for the omission. Market participants speculated that Yulong may be reassessing its pricing strategy amid a steep decline in PP futures, as the PP 2601 contract slid to its lowest level since March 2020.

PE transactions were similarly subdued, reflecting cautious sentiment following the week-long holiday. A handful of HDPE film and yarn cargoes found buyers, though these limited deals were primarily driven by immediate production needs rather than renewed demand momentum.

Traders noted that sentiment across the polyolefin complex remains fragile, weighed down by weak energy benchmarks and rising inventories. “With the market just reopening and crude prices soft, buyers are reluctant to take positions,” a local trader commented. “Many expect further price erosion in the near term.”

The session highlighted the lack of confidence in post-holiday trading conditions, with both subdued consumption and ample supply keeping pressure on prices. Unless upstream costs stabilise or downstream demand improves, the short-term outlook for PE—and particularly PP—remains weak.

Written: Kat Yun Yun
Edited: Aiman Haikal