A mixed development was observed on the Shenhua Auction Platform on the second trading day of the week, with homo-PP achieving a strong number of deals while LLDPE film continued to lag. The significant discrepancy in transaction volumes between the two grades mirrors similar trading results on the Dalian Commodity Exchange.
This marks the third consecutive month where the producer has set HDPE prices below those of LLDPE film, highlighting the persistent supply and demand disparity between the two grades. This pricing trend, prevalent in Southeast Asia, mirrors the situation in China.
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.