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Shandong Yulong Auction: Demand for LLDPE holds while PP remain subduedShandong Yulong’s latest auction underscored the widening gap between PE and PP demand, with LLDPE once again drawing stronger buying interest while PP continued to struggle under ample supply and subdued demand. |
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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) |
3300 |
450 |
6910 |
$856 |
6910 |
$856 |
13.6% |
|
PPH Yarn (EXW) |
1800 |
90 |
6860 |
$850 |
6860 |
$850 |
5.0% |
|
PPH Inj (EXW) |
600 |
0 |
6880 |
$853 |
- |
- |
0.0% |
|
PPH Film (EXW) |
600 |
0 |
6890 |
$854 |
- |
- |
0.0% |
|
PPH Film (FD) |
600 |
0 |
6920 |
$858 |
- |
- |
0.0% |
|
PPRC (EXW) |
405 |
0 |
7570 |
$938 |
- |
- |
0.0% |
|
PPRC (FD) |
900 |
30 |
7570 |
$938 |
7570 |
$938 |
3.3% |
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PPBC (FD) |
1350 |
210 |
7050 |
$874 |
7050 |
$874 |
15.6% |
|
PPBC (EXW) |
540 |
0 |
7000 |
$868 |
- |
- |
0.0% |
|
HD Film (FD) |
2100 |
0 |
7400 |
$917 |
- |
- |
0.0% |
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HD Blow (EXW) |
1851 |
90 |
7170 |
$889 |
7190 |
$891 |
4.9% |
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HD Blow (FD) |
900 |
60 |
7290 |
$904 |
7290 |
$904 |
6.7% |
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HD Yarn (EXW) |
1851 |
90 |
7170 |
$889 |
7190 |
$891 |
4.9% |
|
HD Yarn (FD) |
900 |
60 |
7290 |
$904 |
7290 |
$904 |
6.7% |
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LL Film (EXW) |
1200 |
150 |
7190 |
$891 |
7220 |
$895 |
12.5% |
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LL Film (FD) |
1800 |
1800 |
7240 |
$897 |
7240 |
$897 |
100.0% |
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mPE (EXW) |
510 |
0 |
7840 |
$972 |
- |
- |
0.0% |
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mPE (FD) |
300 |
210 |
7850 |
$973 |
7850 |
$973 |
70.0% |
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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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Shandong Yulong’s latest auction underscored the widening gap between PE and PP demand, with LLDPE once again drawing stronger buying interest while PP continued to struggle under ample supply and subdued demand.
Auction prices for PP homo yarn and LLDPE film both settled at CNY30/ton below Tuesday’s levels. Yet market response diverged sharply: the same discount spurred brisker activity in LLDPE, while PP struggled to attract bids, reinforcing the weaker sentiment surrounding the grade.
“We placed some purchases for LLDPE today as customers were more receptive to the discounts, particularly agricultural film converters in northern China who are securing need-based volumes,” a trader said. “The gap between LLDPE and PP demand may persist until PP inventories ease or an export window opens. At present, no such improvement is visible, and PP may require deeper discounts to generate deals.”
The contrast has been evident for several sessions. In the previous session, LLDPE achieved a 90% buyout rate, a result that not only highlights PP’s weakness but also points to LLDPE’s resilience in the domestic market. Sellers remain cautiously confident that demand for PE will firm in the second half of the year, but acknowledge that current fundamentals offer limited support for a broader price recovery.
Written: Kat Yun Yun
Edited: Farid Muzaffar
Country
China
