Shandong Yulong: Near-absent transactions despite softer offers as buyers stay cautious

Shandong Yulong’s latest auction saw near-absent buying interest, with only 30 tons of HDPE yarn transacted and all other grades left untouched. The across-the-board lack of participation reflects a market that has shifted abruptly into risk-off mode following two sessions of firmer tone earlier in the week. 

Market participants noted that today’s outcome highlights the fragile market sentiment. While selective restocking was observed in earlier sessions—particularly for LLDPE and HDPE film—the retreat in participation suggests buyers are reluctant to commit as they still do not see a clear guidance of the market’s direction.

“Buyers have turned defensive again, and today’s turnout reflects that shift very clearly,” a local trader said, adding that downstream demand remains uneven and converters are increasingly prioritising cash flow over inventory accumulation.

With the weekend approaching and Lunar New Year period on the horizon, most market players expect limited near-term improvement in buying appetite unless futures show a more convincing recovery or producers implement more substantial price adjustments.

Written by: Kat Yun Yun
Edited by: Aiman Haikal