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Shandong Yulong Auction: LLDPE outperforms PP, but demand caution persistsThe latest auction session on the Shandong Yulong platform saw a moderate improvement in sell-through rates, underpinned by gains on the Dalian Commodity Exchange. |
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Product |
Auction Volume |
Deal Volume |
Auction Prices |
Deal Prices |
Deal % |
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CNY/ton |
USD/ton |
CNY/ton |
USD/ton |
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Combined and reported by CommoPlast |
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PPH Yarn (FD) |
2550 |
1620 |
7100 |
$875 |
7100-7130 |
$875-879 |
63.5% |
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PPH Yarn (EXW) |
351 |
54 |
7130 |
$879 |
7130 |
$879 |
15.4% |
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PPH Inj (EXW) |
1740 |
27 |
7090 |
$874 |
7160 |
$882 |
1.6% |
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PPH Inj (FD) |
1460 |
210 |
7140 |
$880 |
7140-7160 |
$880-882 |
14.4% |
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PPH Film (EXW) |
900 |
0 |
7090 |
$874 |
- |
- |
0.0% |
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PPBC (FD) |
1440 |
0 |
7200 |
$887 |
- |
- |
0.0% |
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PPBC (EXW) |
811 |
60 |
7170 |
$884 |
7170 |
$884 |
7.4% |
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HD Blow (EXW) |
567 |
513 |
7330 |
$903 |
7330 |
$903 |
90.5% |
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HD Blow (FD) |
900 |
0 |
7400 |
$912 |
- |
- |
0.0% |
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HD Yarn (EXW) |
432 |
421 |
7680 |
$947 |
7720-7740 |
$952-954 |
97.5% |
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HD Yarn (FD) |
900 |
270 |
7780 |
$959 |
7780 |
$959 |
30.0% |
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LL Film (EXW) |
1845 |
1335 |
7350 |
$906 |
7360-7470 |
$907-921 |
72.4% |
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LL Film (FD) |
750 |
660 |
7350 |
$906 |
7350 |
$906 |
88.0% |
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* 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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The latest auction session on the Shandong Yulong platform saw a moderate improvement in sell-through rates, underpinned by gains on the Dalian Commodity Exchange. Yet, procurement behaviour remained conservative, with most buyers continuing to adopt a hand-to-mouth strategy amid muted pricing incentives.
Indeed, participants noted that the auction prices for both PP and PE cargoes largely aligned with prevailing spot market values, offering limited advantage for bulk purchasing.
“We didn’t find the auction prices particularly compelling,” commented a local buyer. “They were well within the current market range, so we chose not to commit to larger volumes. We're still negotiating with local sellers in hopes of securing a better spot deals.”
LLDPE stood out as the relative outperformer, with deal ratios of 72.4% and 88.0% for EXW and FD parcels respectively. In contrast, most PP grades saw underwhelming conversion rates, with PPH Injection (EXW) recording a dismal 1.6% deal ratio.
The performance disparity highlights ongoing caution in the PP segment, where buyers remain wary of oversupply risks and fragile end-product demand, particularly as pricing stays near or above market norms.
Looking ahead to August, market players are cautiously optimistic that the seasonal pick-up in manufacturing activities could revitalise demand. Additionally, expectations of reduced import arrivals may help stabilise supply and lend some support to domestic prices.
Written: Kat Yun Yun
Edited: Aiman Haikal
