Shandong Yulong Auction: Irregular schedules and unappealing pricing hurt auction results
Shandong Yulong resumed online auctions after a brief suspension; however, despite firmer futures prices on the Dalian Commodity Exchange and a relatively modest auction volume
|
Product |
Auction Volume |
Deal Volume |
Auction Prices |
Deal Prices |
Deal % |
||
|
CNY/ton |
USD/ton |
CNY/ton |
USD/ton |
||||
|
Combined and reported by CommoPlast |
|||||||
|
PPH Yarn (EXW) |
150 |
60 |
7080 |
$871 |
7080 |
$871 |
40.0% |
|
PPH Yarn (FD) |
510 |
0 |
7090 |
$873 |
- |
- |
0.0% |
|
PPBC (FD) |
900 |
0 |
7180 |
$884 |
- |
- |
0.0% |
|
PPBC (EXW) |
1200 |
0 |
7100 |
$874 |
- |
- |
0.0% |
|
PPH Film(EXW) |
180 |
0 |
7060 |
$869 |
- |
- |
0.0% |
|
LL Film (EXW) |
900 |
450 |
7150 |
$880 |
7150-7250 |
$880-892 |
50.0% |
|
LL Film (FD) |
1200 |
600 |
7150 |
$880 |
7160-7280 |
$881-8996 |
50.0% |
|
* 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 resumed online auctions after a brief suspension; however, despite firmer futures prices on the Dalian Commodity Exchange and a relatively modest auction volume, market engagement remained lacklustre. Sell-through rates for PP and LLDPE were broadly disappointing.
According to market sources, the recent removal of distributor qualification assessments—previously linked to minimum purchase commitments through the auction platform—has led to disinterest among buyers. Without the pressure to maintain eligibility, many participants are opting to stay on the sidelines or seek alternative supply channels.
A local trader commented, “Demand is still weak, and the pricing strategy adopted by Shandong Yulong lacks appeal. Buyers are increasingly benchmarking against Shenhua’s more attractive offers and favouring options that deliver better value for money.”
The inconsistency in auction scheduling has further dampened sentiment. Shandong Yulong has not been conducting auctions on a regular daily basis throughout the month, leading to reduced visibility and waning interest from market participants.
Written: Kat Yun Yun
Edited: Rochelle Nguyen