Shandong Yulong Auction: Steep HDPE discounts spark sole pocket of liquidity
While the producer successfully cleared its HDPE film parcels through aggressive pricing, the remainder of the auction slate faced a total standoff due to uncompetitive offer levels.
|
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) |
300 |
0 |
6230 |
$790 |
- |
- |
0.0% |
|
|
PPBC Inj (FD) |
300 |
0 |
6320 |
$801 |
- |
- |
0.0% |
|
|
HDPE Film (FD) |
390 |
390 |
6700 |
$849 |
6790-6800 |
$861-862 |
100.0% |
|
|
HDPE Blow(FD) |
1032 |
0 |
6850 |
$868 |
- |
- |
0.0% |
|
|
LLDPE Film (FD) |
1500 |
0 |
6480 |
$822 |
- |
- |
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’s latest auction session on 06 January 2026 delivered a bifurcated result. While the producer successfully cleared its HDPE film parcels through aggressive pricing, the remainder of the auction slate faced a total standoff due to uncompetitive offer levels.
HDPE film was the only grade to achieve a full sell-through, driven by clearing prices (CNY 6,790–6,800/ton) that sat significantly below the prevailing domestic spot average of CNY 7,325/ton. This steep discount of over CNY 500/ton effectively incentivised participants to absorb the 390-ton lot, even as broader market sentiment remained fragile.
In stark contrast, LLDPE film auction prices were hiked to CNY 6,480/ton—roughly CNY 130/ton above pre-holiday levels. This move met with total buyer rejection, resulting in a 0.0% deal rate. Participants noted that while the levels were technically within the market range, they offered no arbitrage value compared to alternative supply channels.
Bidding for homo-PP was non-existent as the auction floor of CNY 6,230/ton carried a significant premium over the spot market yarn average of CNY 6,125/ton. Without a price advantage, buyers opted for the flexibility of spot procurement over committed auction volumes.
Market observers highlighted Yulong’s increasing focus on HDPE output, including the presence of off-grade material in the auction. This suggests the producer is prioritising the liquidation of HDPE stocks over other polymers, potentially to manage storage constraints as it ramps up new-year operations.
Written by: Kat Yun Yun
Edited by: Farid Muzaffar