The weak performance of the Shenhua Auction Platform reflected persistent sluggishness in the domestic spot market. A lack of confidence in the near-term outlook kept buyers on the sidelines, even as current price levels appeared increasingly attractive.
Industry sources indicate that the sustained strength in PP deals is driven by trading houses aggressively procuring cargo for exports. Local buyers, however, largely refrained, as the prevailing auction deal prices are unviable for the domestic spot market.
The Shenhua Auction Platform opened on a steady note, initially reflecting a modest rebound in early-session trading on the Dalian Commodity Exchange. However, buying interest turned increasingly cautious as futures performance softened toward the mid-day break.