Shandong Yulong Auction: LLDPE Film Gains Buying Interest on Futures Rebound; Other Grades Unsold

Shandong Yulong concluded its latest resin auction on 13 November with limited trading activity, as only LLDPE film recorded deals while all HDPE grades went unsold. No PP cargoes were offered during the session.

Participants attributed the selective transactions to a mild rebound in LLDPE futures and immediate, need-based replenishment, particularly from converters covering short-term requirements.

Market feedback indicated that buyers remained cautious, evaluating price movements carefully and holding back on larger purchases. “The LLDPE deals largely reflect near-term demand,” a local trader said. “There’s no urgency to commit further, especially with sentiment still fragile and prices yet to stabilise fully.”

By contrast, HDPE film, blow moulding, and yarn grades attracted no buying interest.  Participants noted that the pricing was broadly in line with prevailing spot levels, but lacklustre downstream demand and cautious risk appetite kept interest muted. Observers highlighted that alternative sourcing from the domestic spot market and previously secured cargoes also contributed to the subdued response.

The session highlights a continued need-based, selective buying environment, with LLDPE film the sole material to see activity. The lack of HDPE transactions reflects buyers’ preference to defer purchases until clearer pricing signals emerge. While LLDPE demand remains underpinned by agricultural and industrial applications, overall sentiment across the auction remains cautious, with market participants watching subsequent sessions for indications of price direction and availability.

Written by: Kat Yun Yun
Edited by: Aiman Haikal