Shandong Yulong Auction: Higher LLDPE offers face market pushback
Shandong Yulong’s latest auction session for PP and PE posted lacklustre results, as higher LLDPE film prices met with firm resistance from buyers
Shandong Yulong’s latest auction session for PP and PE posted lacklustre results, as higher LLDPE film prices met with firm resistance from buyers amid a persistently bearish sentiment in both futures and spot markets.
While some transactions were concluded, the broader buying interest remained subdued. Most participants pointed to the producer’s decision to raise LLDPE film auction prices by CNY 30–80/ton compared to the previous round as a key deterrent. The move contrasted sharply with the recent downward trajectory in domestic spot prices, reinforcing hesitation among buyers.
|
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 |
60 |
7080 |
$874 |
7110 |
$878 |
6.7% |
|
PPH Yarn (EXW) |
750 |
0 |
7080 |
$874 |
- |
- |
0.0% |
|
PPH Inj (FD) |
1980 |
30 |
7070 |
$873 |
7120 |
$879 |
1.5% |
|
PPBC (FD) |
429 |
273 |
7210 |
$890 |
7210-7300 |
$890-901 |
63.6% |
|
PPBC (EXW) |
1110 |
60 |
7180 |
$886 |
7210 |
$890 |
5.4% |
|
PPH Inj (FD) |
1500 |
90 |
7160 |
$884 |
7180 |
$886 |
6.0% |
|
HD Yarn (FD) |
210 |
120 |
7850 |
$969 |
7850 |
$969 |
57.1% |
|
HD Inj (EXW) |
459 |
189 |
7400 |
$913 |
7400 |
$913 |
41.2% |
|
HD Blow (FD) |
1800 |
60 |
7500 |
$926 |
7530-7550 |
$929-932 |
3.3% |
|
LL Film (EXW) |
1623 |
633 |
7260 |
$896 |
7260-7430 |
$896-917 |
39.0% |
|
LL Film (FD) |
540 |
240 |
7230 |
$892 |
7230 |
$892 |
44.4% |
|
* 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. |
|||||||
“The local market has clearly been weakening in recent days, and Yulong’s elevated auction offers appear increasingly disconnected from prevailing sentiment,” remarked a trader. “With auctions only held twice weekly, abrupt pricing shifts leave buyers little room to adjust. Many believe the auction mechanism is lagging behind real-time market developments.”
Speculation has also emerged that the producer may be using the auction platform to test the market’s appetite for higher prices, potentially as a precursor to adjusting spot offers. Yet, this strategy has so far delivered limited success, with deal volumes remaining modest.
Written: Kat Yun Yun
Edited: Rochelle Nguyen