Shandong Yulong Auction: PE Outperforms PP as Buyers Remain Selective

Shandong Yulong’s latest auction highlighted a widening divergence between PE and PP performance, with PE showing firmer demand while PP remained under pressure.

Volumes of LLDPE film were restricted following recent production distruption, leaving availability tighter than in earlier sessions. Market participants described the impact as modest but noted supply constraints continue to lend some support.

PP prices were lowered by CNY10–30/ton from last Thursday, yet the cuts failed to draw meaningful buying interest. Traders said alternative supply sources offered more competitive levels, keeping demand for Yulong’s lots muted.

In contrast, PE cargoes attracted steadier uptake. “There are ongoing purchases from packaging converters, but mainly on a cautious, need-basis and with selective price acceptance,” a local trader said. “We still see firmer expectations for PE than PP, which is reflected in the auction results. Ahead of the holiday, some deals should continue, but confidence in a sustained rebound remains limited given the cautious sentiment.”

Seasonal demand from the agricultural sector is also lending incremental support to LLDPE, though purchases remain limited and largely need-based.

Overall, the session reaffirmed PE’s relative resilience compared with PP. Yet broader fundamentals remain fragile, with sentiment still cautious and participants watching post-holiday trends for clearer signals of recovery.

Written by: Kat Yun Yun
Edited by: Aiman Haikal