Shandong Yulong Auction: Weak sentiment limits PP, PE deal volume
Shandong Yulong’s auction on 18 November delivered another subdued performance, with no deals recorded for PP and only small parcels of HDPE and LLDPE transacted.
|
Product |
Auction Volume |
Deal Volume |
Auction Prices |
Deal Prices |
Deal % |
||
|
CNY/ton |
USD/ton |
CNY/ton |
USD/ton |
||||
|
Combined and reported by CommoPlast |
|||||||
|
PPH Raf (FD) |
450 |
0 |
6430 |
$800 |
- |
- |
0.0% |
|
PPBC (FD) |
300 |
0 |
6580 |
$819 |
- |
- |
0.0% |
|
LLDPE Film (FD) |
2376 |
84 |
6800 |
$846 |
7050-7130 |
$877-887 |
3.5% |
|
HDPE Film (FD) |
135 |
0 |
7530 |
$937 |
- |
- |
0.0% |
|
HDPE Blow (FD) |
2013 |
135 |
7050 |
$877 |
7230 |
$900 |
6.7% |
|
HDPE Yarn (FD) |
732 |
270 |
7100 |
$884 |
7100 |
$884 |
36.9% |
|
HDPE Yarn (EXW) |
300 |
0 |
7070 |
$880 |
- |
- |
0.0% |
|
* 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. |
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Shandong Yulong’s auction on 18 November delivered another subdued performance, with no deals recorded for PP and only small parcels of HDPE and LLDPE transacted. Market participants said the quiet outcome reflected persistent caution, as buyers limited activity to immediate replenishment amid a softening futures market.
A local trader noted that the continued weakness in PP futures dampened appetite throughout the morning. “Customers are mostly on standby. The auction prices were aligned with current spot levels, so there wasn’t much incentive to step in,” the source said. Several market watchers also suggested the producer may be holding prices steady to safeguard margins, resulting in offers that were not sufficiently competitive to draw volume.
Auction indicators likewise stood at a premium to the low end of the spot market — with homo-PP raffia assessed around CNY 200/ton higher and HDPE film roughly CNY 330/ton above prevailing discussions. The price gap, sources said, further constrained buying interest.
With year-end approaching and demand recovery still lagging, participants warned that pressure may accumulate if supply digestion fails to keep pace, setting the stage for a potentially softer close to the fourth quarter.
Written by: Kat Yun Yun
Edited by: Farid Muzaffar