Shandong Yulong Auction: HDPE yarn sees marginal activity; other grades unsold

Shandong Yulong’s latest auction on 6 November concluded on a disappointing note, with minimal participation and only a single HDPE yarn deal reported, underscoring the continued weakness in market sentiment.

No transactions were recorded for PP or LLDPE grades, as participants refrained from bidding amid what they described as “uncompetitive” offer levels compared to prevailing spot prices in the open market.

“The producer’s prices are still lagging behind current market expectations,” a local trader said. “Converters have sufficient inventories and better sourcing options elsewhere, so there’s little urgency to participate.”

While HDPE yarn managed a token deal at CNY 7,150/ton FD, activity remained lacklustre overall. Sources noted that Shandong Yulong’s limited flexibility on pricing—constrained by narrowing profit margins—has restricted its ability to stimulate buying interest.

Market participants noted that unless the producer adjusts its offers to align more closely with prevailing spot benchmarks, current expectation is that trading activity will remain subdued until downstream demand improves in the second half of November, ahead of Lunar New Year preparations. With demand still muted and futures offering little direction, sentiment across both PP and PE markets remains fragile.

Written: Kat Yun Yun
Edited: Aiman Haikal