Shandong Yulong Auction: PP and PE demand slumps as bearish sentiment deepens

Shandong Yulong’s latest auction on 14 October showed sluggish participation across both PP and PE sectors, underscoring the persistent weakness in market sentiment after the holidays.

Demand for PP remained largely absent, with only minimal interest in PPRC inj, where a token deal was concluded at CNY 7400/ton FD. Other PP grades, including PPH yarn, failed to attract bids despite prices being CNY 100–150/ton below late-September levels.

LLDPE film continued to perform relatively better but still recorded only partial sales. Market participants noted that most of these purchases were need-based replenishment rather than signs of genuine demand recovery. The grade’s auction offers were approximately CNY 120/ton lower than last week, keeping them aligned with prevailing spot indications and offering limited incentive for aggressive buying.

Across the broader market, the tone remained downbeat as the softening polyolefin futures eroded sentiment. One trader commented, “If the auction had been held yesterday, PP deals might have been stronger. But with today’s weaker sentiment, most customers are waiting for further discounts. We expect downward pressure to persist in the next auction session.”

The outcome reinforced expectations that sentiment will stay fragile in the near term, with subdued downstream demand and adequate supply likely to cap any price recovery before the end of October.

Written: Kat Yun Yun
Edited: Aiman Haikal