Shandong Yulong Auction: Lower offers boosted interest in homo-PP while LLDPE remained underperformed

Shandong Yulong’s latest auction session saw a rebound in homo-PP yarn and HDPE transactions, with lower starting prices drawing in more buyers compared to last Thursday. However, LLDPE film continued to struggle as firm price levels dampened interest.

For homo-PP yarn (FD), the auction price was set at CNY 7,050/ton, marking a CNY 40–50/ton reduction from last week. The discount lifted the deal ratio to 73.3%, translating to 1,320 tons sold out of 1,800 tons offered. EXW parcels achieved only limited take-up, reinforcing that freight-inclusive terms remain more attractive to downstream converters.

Market participants noted that the producer released noticeably larger PP volumes than in recent auctions, a move interpreted as rising sales pressure at the producer level. “Discounts have encouraged some restocking, but demand is still largely hand-to-mouth,” a Shandong-based trader commented.

HDPE blow moulding (FD) also posted healthy absorption, with nearly 80% of volumes placed successfully, supported by stable-to-slightly softer offers. By contrast, LLDPE film failed to gain traction, with EXW lots selling just 210 tons out of 1,260 tons offered and FD parcels seeing no deals at all. Buyers pointed to the absence of meaningful price concessions as the primary deterrent.

Beyond the auction floor, macro sentiment received a modest boost as the US and China agreed on Monday to extend their tariff truce by 90 days. While the move averts the reimposition of triple-digit duties, market watchers caution that any uplift in polyolefin demand from this policy reprieve will be gradual and closely tied to year-end downstream restocking cycles.

Written: Kat Yun Yun

Edited: Farid Muzaffar