Shandong Yulong Auction: Improved sentiment lifts deal volume
The latest auction session at Shandong Yulong signalled a pivot from the stagnation that characterised the December period. While the results remain bifurcated across grades
Shandong Yulong’s auction on 08 January 2026 registered a marked improvement in transaction levels compared to recent sessions. The result was supported by a combination of need-based procurement and a modest recovery in domestic sentiment, which allowed the producer to facilitate a higher volume of concluded deals despite maintaining a firm pricing strategy.
|
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) |
600 |
540 |
6360 |
$805 |
6360-6400 |
$805-810 |
90.0% |
|
PPBC Inj (FD) |
300 |
30 |
6470 |
$819 |
6470 |
$819 |
10.0% |
|
HDPE Film (FD) |
360 |
360 |
6800 |
$861 |
6900-6960 |
$874-881 |
100.0% |
|
HDPE Blow(FD) |
600 |
0 |
6900 |
$874 |
- |
- |
0.0% |
|
HDPE Blow(EXW) |
450 |
90 |
6700 |
$848 |
6700-6710 |
$848-850 |
20.0% |
|
LLDPE Film (FD) |
2700 |
1500 |
6550 |
$8829 |
6620-6710 |
$838-850 |
55.6% |
|
* 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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The latest auction session at Shandong Yulong signalled a pivot from the stagnation that characterised the December period. While the results remain bifurcated across grades, the producer managed to clear substantial volumes of LLDPE and HDPE film, leveraging the current rebound on the Dalian Commodity Exchange (DCE).
The session’s primary highlight was the LLDPE film segment, where a significant volume of 2,700 tons was offered. Despite the producer’s refusal to discount—setting auction floors at a firmer CNY 6,550/ton—the grade achieved a 55.6% deal rate.
Market participants noted that 1,500 tons were successfully transacted, a volume widely viewed as a breakthrough following a prolonged run of anaemic results. The robust uptake was largely attributed to a trader covering earlier forward sales and opting to replenish stocks via the auction as physical market sentiment firms.
While HDPE film maintained a 100% deal rate at prices reaching up to CNY 6,960/ton FD, other grades continued to encounter friction. PPBC and HDPE blow moulding grades recorded minimal to zero uptake, highlighting that buyers remain highly selective. The zero-deal result for FD-basis HDPE blow underscores that Yulong’s offers in specific segments still carry a premium that price-sensitive converters are unwilling to absorb while cheaper alternative supply remains available in the distribution channel.
The relatively strong LLDPE outcome has reinforced expectations that the producer will maintain a firm stance on offers in the coming sessions. However, industry observers caution that the current window of liquidity may be tactical rather than structural.
"The rebound is being fuelled by short-covering and festive restocking," a local participant observed. "Once these immediate requirements are met, the producer’s rigid pricing may once again face pushback unless downstream demand shows more substantial signs of life."
Written by: Kat Yun Yun
Edited by: Aiman Haikal