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Shandong Yulong’s 9 December auction ended without a single concluded deal, marking another session of subdued engagement as sentiment across China’s domestic polyolefin market remains notably fragile. Despite a broad slate of PP and PE grades on offer, buyers showed no inclination to participate, with all volumes left untouched.

Market players attributed the lack of activity to increasingly aggressive discounts from local distributors, who remain under pressure to move material amid sluggish downstream demand. With flexible negotiations widely available, converters found little incentive to procure through the auction platform, even if listed prices aligned with mainstream market levels.

“Buyers who actually need material can still squeeze additional concessions from the local market,” a trader said, noting that this continues to undermine the competitiveness of Yulong’s auction offerings. He added that the absence of a clear price floor is reinforcing a wait-and-see stance across the value chain.

Participants also observed that Yulong’s recent auction performance has struggled to gain traction as competitive alternatives remain abundant and sentiment stays cautious. Until firmer signs of stabilisation appear—either through a shift in downstream demand or a more convincing pullback in supply—players expect auction outcomes to remain muted in the near term.

Written by: Kat Yun Yun
Edited by: Farid Muzaffar

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China