Shandong Yulong Auction: Firmer market tone and softer offers support LLDPE, HDPE deals

Shandong Yulong’s latest auction showed selective buying for both LLDPE and HDPE films, supported by slightly softer offers of CNY 80–100/ton from the previous session. Deal volumes improved modestly, though overall participation remained restrained, reflecting cautious sentiment in a market balancing stable supply against muted downstream demand.

Traders said the uptick was largely driven by needs-based restocking, with buyers responding to more attractive pricing that better reflects current market fundamentals. “Today’s pricing encouraged some deals, but buyers remain hesitant to commit beyond immediate requirements,” a local participant said.

LLDPE film recorded full clearance of certain parcels, despite the absence of lower-priced lots, indicating selective interest from converters and distributors. In contrast, HDPE yarn and blow grades saw minimal uptake, highlighting persistent buyer caution amid uncertainty over short-term demand and inventory absorption.

Market watchers noted that the firmer tone in domestic spot markets and relatively stable futures over the past two days helped support auction interest. However, traders remain wary of potential supply pressures from upcoming import cargoes and the broader impact of Lunar New Year-related orders on domestic consumption.

Overall, the auction results illustrate a market in cautious equilibrium: moderate deal activity provides short-term price support, but broader momentum will depend on downstream demand, upcoming import arrivals, and continued monitoring of futures movements over the coming weeks.

Written by: Kat Yun Yun

Edited by: Farid Muzaffar