Shandong Yulong Auction: Weak buying interest persists as prices remain unattractive
Shandong Yulong’s latest auction for PP and PE recorded muted activity, with the majority of grades concluding only on a need-basis or remaining unsold.
|
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) |
2400 |
210 |
7000 |
$866 |
7000 |
$866 |
8.8% |
|
PPH Yarn (EXW) |
1200 |
30 |
6950 |
$860 |
6970 |
$863 |
2.5% |
|
PPH Inj (EXW) |
300 |
0 |
7010 |
$868 |
- |
- |
0.0% |
|
PPH Film (EXW) |
300 |
0 |
6990 |
$865 |
- |
- |
0.0% |
|
PPH Film (FD) |
1200 |
0 |
7000 |
$866 |
- |
- |
0.0% |
|
PPRC (FD) |
810 |
0 |
7100 |
$879 |
- |
- |
0.0% |
|
PPBC (FD) |
2049 |
0 |
7000 |
$866 |
- |
- |
0.0% |
|
PPBC (EXW) |
1657 |
30 |
7000 |
$866 |
7060 |
$874 |
1.8% |
|
HD Film (FD) |
2400 |
30 |
7440 |
$921 |
7580 |
$938 |
1.3% |
|
HD Blow (EXW) |
2010 |
54 |
7220 |
$894 |
7220 |
$894 |
2.7% |
|
HD Blow (FD) |
1500 |
0 |
7350 |
$910 |
- |
- |
0.0% |
|
HD Yarn (EXW) |
708 |
0 |
7540 |
$933 |
- |
- |
0.0% |
|
HD Yarn (FD) |
900 |
30 |
7590 |
$939 |
7590 |
$939 |
3.3% |
|
LL Film (EXW) |
1416 |
156 |
7310 |
$905 |
7330 |
$907 |
11.0% |
|
LL Film (FD) |
1350 |
60 |
7300 |
$904 |
7350 |
$910 |
4.4% |
|
mPE (FD) |
300 |
180 |
7920 |
$980 |
7920 |
$980 |
60.0% |
|
* 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. |
|||||||
Shandong Yulong’s latest auction for PP and PE recorded muted activity, with the majority of grades concluding only on a need-basis or remaining unsold. The notable exceptions were metallocene PE (mPE), which saw selective uptake at discounted levels, and LLDPE film, which attracted moderate interest. Other grades—including PPH yarn, injection and film, PPBC, and HDPE—experienced minimal participation.
Auction prices were broadly unchanged or slightly lower than prior sessions. Modest discounts of CNY50/ton on certain grades proved insufficient to stimulate broader demand, as buyers continued to exercise caution and held back above prevailing market levels.
A review of recent sessions indicates a gradual decline in engagement for most PP grades, while select PE grades maintain sporadic demand when prices approach recognised resistance levels—underscoring a cautious stance among downstream buyers.
Market participants highlighted that Yulong still retains substantial volumes for auction. Coupled with the approaching month-end, this suggests potential pressure to implement further price reductions if buying interest fails to improve.
Written: Kat Yun Yun
Edited: Aiman Haikal