Shenhua Auction Platform kickstarted the new week on a disappointing note as bidders shied away from new purchases following the steep fall on the Dalian Commodity Exchange. The Third Plenum meeting outcome fell short of market expectations, eroding confidence in the near-term outlook.
At least five LDPE units, with a combined annual output of 940,000 tons, have resumed or are scheduled to resume operations in July. Additionally, a surge in import arrivals has further bolstered local spot availability.
The conclusion of the Third Plenum meeting without specific economic stimulus guidelines further dampened market confidence in the near-term outlook. The absence of clear policy direction leaves market participants grappling with uncertainty, contributing to the prevailing bearish sentiment.
Shenhua concluded the final auction session of the week on a soft note despite escalated efforts to stimulate buying interest. Chinese bidders remained cautious, prioritizing concerns about the bleak near-term outlook and declining futures trading over the seemingly attractive auction cargo.