Shandong Yulong Auction: LLDPE sees moderate uptake, PP trade stall
Despite resilient futures on the Dalian Commodity Exchange and a rebound in the domestic spot market, auction activity at Shandong Yulong remained subdued. LLDPE film registered a moderate sell-through rate of 66%,
|
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) |
300 |
0 |
6110 |
$772 |
- |
- |
0.0% |
|
PP Thinwall (FD) |
150 |
0 |
6430 |
$813 |
- |
- |
0.0% |
|
PPBC Inj (FD) |
300 |
0 |
6240 |
$789 |
- |
- |
0.0% |
|
LL Film (EXW) |
1500 |
990 |
6250 |
$790 |
6250-6300 |
$790-796 |
66.0% |
|
* 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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Despite resilient futures on the Dalian Commodity Exchange and a rebound in the domestic spot market, auction activity at Shandong Yulong remained subdued. LLDPE film registered a moderate sell-through rate of 66%, while all available PP parcels failed to attract bids.
Market sources indicate that the producer has increasingly allocated PP volumes to the spot market, mitigating the need to offload cargo via auctions. Consequently, the muted bidder response appears unlikely to influence the producer’s auction pricing strategy.
“Shandong Yulong has maintained a firm pricing stance, partly in response to concerns over unhealthy competition in the polyolefin sector,” noted a market participant. “However, this rigidity has redirected price-sensitive buyers to alternative venues, contributing to persistent sluggish sales for PP at the auction platform.”
The market will now be closely watching whether upcoming auctions and spot allocations can balance strong pricing ambitions with actual buyer demand as year-end approaches.
Written by: Kat Yun Yun
Edited by: Rochelle Nguyen