Even for businesses not directly impacted by the US tariffs, the current market landscape remains fraught with challenges. Sentiment over the near-term outlook is increasingly bearish, weighed down by weakening demand, currency headwinds, and a sharp downturn in the energy complex.
The Shenhua Auction Platform saw improved sales from the previous session, driven by stronger hand-to-mouth purchasing in both the LLDPE and PP segments. However, bids were noticeably more cautious, reflecting the softness on the Dalian Commodity Exchange.
Although Shandong Yulong’s auction platform continued to see elevated uptake rates, bidders settled deals at lower levels, reflecting caution in both the spot market and the Dalian Commodity Exchange. In the spot market, discounts had been required to stimulate buying, prompting traders to mitigate pricing risks during restocking.
The LLDPE segment continued to underperform PP on the Shenhua Auction Platform, even after a recovery in the futures market. This contrast echoed trends in the spot market, where LLDPE prices remained in decline for a 14th week