Shandong Yulong Auction: PE outperform PP as buyers stick to essential purchases
Trading sentiment on the Shandong Yulong Auction Platform remained broadly subdued compared to the previous session, with auction prices largely firmer than prevailing domestic spot levels
|
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) |
1200 |
90 |
7100 |
$876 |
7130 |
$880 |
7.5% |
|
PPH Yarn (EXW) |
351 |
0 |
7130 |
$880 |
- |
- |
0.0% |
|
PPH Inj (FD) |
1080 |
120 |
7130 |
$880 |
7130-7150 |
$880-882 |
11.1% |
|
PPH Inj (EXW) |
945 |
0 |
7100 |
$876 |
- |
- |
0.0% |
|
PPH Film (EXW) |
600 |
0 |
7100 |
$876 |
- |
- |
0.0% |
|
PPBC (FD) |
330 |
30 |
7210 |
$890 |
7210 |
$890 |
9.1% |
|
PPBC (EXW) |
1380 |
30 |
7140 |
$881 |
7180 |
$886 |
2.2% |
|
PPH Inj (FD) |
1950 |
30 |
7070 |
$873 |
7090 |
$875 |
1.5% |
|
HD Blow (FD) |
1500 |
330 |
7400 |
$913 |
7400-7430 |
$913-917 |
22.0% |
|
HD Blow (EXW) |
954 |
654 |
7330 |
$905 |
7350-7400 |
$907-913 |
68.6% |
|
LL Film (EXW) |
2563.5 |
2053.5 |
7130 |
$880 |
7190-7310 |
$887-902 |
80.1% |
|
LL Film (FD) |
1200 |
1200 |
7230 |
$892 |
7330-7350 |
$905-907 |
100.0% |
|
* 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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Trading sentiment on the Shandong Yulong Auction Platform remained broadly subdued compared to the previous session, with auction prices largely firmer than prevailing domestic spot levels—deterring broad-based buying interest.
However, PE outperformed PP, with LLDPE film grades in particular attracting strong demand. The LLDPE film based on FD terms sold out entirely, while the EXW parcels achieved an impressive 80.1% deal rate. Market participants pointed to reduced availability stemming from the ongoing shutdown of one of the HDPE/LLDPE production lines as a key driver behind the heightened interest.
In contrast, PP grades continued to struggle. PPH yarn and injection grades recorded minimal deals, and most EXW parcels remained unsold. Converters appeared hesitant to commit, citing concerns over the sustainability of recent gains in futures and a cautious outlook on near-term price direction. Many buyers opted to delay purchases, anticipating potential discounts in upcoming sessions.
The results underscore a selective buying strategy among downstream players, with essential procurement taking precedence amid a still-fragile market outlook.
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