Shandong Yulong Auction: Uncompetitive pricing weighs on PP and PE performance
The subdued outcome was largely attributed to uncompetitive pricing, which failed to draw substantial interest amid the availability of more attractively priced materials on competing platforms.
Shandong Yulong wrapped up its latest auction session with disappointing results, as tepid buyer response left most PP and PE grades underperformed—except for HDPE yarn, which was the sole product to achieve a full sell-through.
|
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 (FD) |
900 |
150 |
7110 |
$8788 |
7110 |
$878 |
16.7% |
|
PPBC (FD) |
2331 |
333 |
7160 |
$884 |
7160 |
$884 |
14.3% |
|
PPBC (EXW) |
1140 |
30 |
7160 |
$884 |
7160 |
$884 |
2.6% |
|
PPH Inj (FD) |
1500 |
90 |
7160 |
$884 |
7180 |
$886 |
6.0% |
|
HD Yarn (FD) |
300 |
300 |
7900 |
$975 |
7900 |
$975 |
100.0% |
|
LL Film (EXW) |
1770 |
54 |
7260 |
$896 |
7310 |
$902 |
3.1% |
|
LL Film (FD) |
3060 |
780 |
7200 |
$889 |
7200 |
$889 |
25.5% |
|
* 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 subdued outcome was largely attributed to uncompetitive pricing, which failed to draw substantial interest amid the availability of more attractively priced materials on competing platforms. Coal-based grades offered via the Shenhua Auction have recently dipped by CNY 50–150/ton, while spot PP and PE transactions have recorded day-on-day losses of around CNY 50/ton.
“Auction platforms are expected to deliver pricing advantages. Without that edge, participation naturally thins out,” a market source commented, adding that unsold quantities are likely to be rerouted to the producer’s distribution channels.
The auction outcomes highlighted the fragile market sentiment and the high price sensitivity among market participants. This condition is expected to persist as the market navigates a traditional lull season.
Written: Kat Yun Yun
Edited: Rochelle Nguyen