Shandong Yulong Auction: Modest pickup in PP and LLDPE deals, but sentiment still fragile
A slight improvement in deal activity at its 20 November auction, with homo-PP yarn and LLDPE film seeing higher transaction volumes compared with earlier this week
|
Product |
Auction Volume |
Deal Volume |
Auction Prices |
Deal Prices |
Deal % |
||
|
CNY/ton |
USD/ton |
CNY/ton |
USD/ton |
||||
|
Combined and reported by CommoPlast |
|||||||
|
PPH Raf (FD) |
324 |
135 |
6450 |
$802 |
6450-6460 |
$802-803 |
41.7% |
|
PPBC (FD) |
300 |
0 |
6580 |
$818 |
- |
- |
0.0% |
|
LLDPE Film (FD) |
1983 |
660 |
6800 |
$845 |
6880-7070 |
$855-879 |
33.3% |
|
HDPE Film (FD) |
408 |
0 |
7350 |
$914 |
- |
- |
0.0% |
|
HDPE Blow (FD) |
1797 |
57 |
7050 |
$876 |
7180-7220 |
$892-897 |
3.2% |
|
HDPE Yarn (FD) |
975 |
81 |
7100 |
$882 |
7300 |
$907 |
8.3% |
|
HDPE Yarn (EXW) |
300 |
0 |
7070 |
$879 |
- |
- |
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. |
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Shandong Yulong saw a slight improvement in deal activity at its 20 November auction, with homo-PP yarn and LLDPE film seeing higher transaction volumes compared with earlier this week.
However, overall participation remained limited, reflecting a market still dominated by short-term, need-based procurement rather than a shift in sentiment. Most PP copolymers and HDPE grades attracted no buying interest.
Market sources said the producer remains under sales pressure and has reportedly trimmed PP output to manage inventory. Despite this, pricing flexibility is constrained as the producer seeks to preserve margins, making it difficult to offer materially more competitive numbers.
“The producer needs to protect profitability, so room for deeper price cuts is limited, and that caps their ability to draw more demand,” a trader commented. He added that spot trading was also quieter today, with buyers unwilling to chase volume without clearer market direction. “Until prices stabilise more convincingly, alternative supply remains more attractive than the auction.”
Market activity is expected to remain price-driven, with buyers focusing on replacement cost advantages and near-term restocking. Unless pricing becomes more competitive or demand sees a material improvement, further auctions may continue to see mixed results.
A clearer trend could depend on futures performance, regional competition, and confirmation of operating rate adjustments in the days ahead.
Written by: Kat Yun Yun
Edited by: Aiman Haikal