Shandong Yulong Auction: Strong PP uptake on firmer sentiment and competitive pricing
Shandong Yulong’s latest auction, the second consecutive session offering only PP cargoes, saw robust off-take despite lower cargoes on offer amid improving market sentiment.
|
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) |
750 |
750 |
9090 |
$1169 |
9140-9190 |
$1176-1182 |
100.0% |
|
PP Thinwall (FD) |
300 |
300 |
9260 |
$1191 |
9310-9320 |
$1198-1199 |
100.0% |
|
PPBC (FD) |
1299 |
1110 |
9100 |
$1171 |
9100-9230 |
$1171-1187 |
85.5% |
|
* 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. |
|||||||
Shandong Yulong’s latest auction, the second consecutive session offering only PP cargoes, saw robust demand amid improving market sentiment. Gains in PP 2605 futures of CNY 115 ($17) and a rebound in crude oil prices underpinned buying interest, with both homo-PP yarn and thin-wall grades fully sold out.
Market participants noted that slightly more competitive pricing further strengthened uptake. Homo-PP yarn was offered CNY 10/ton lower, while PPBC prices were discounted CNY 100/ton from Tuesday’s session, making offers more attractive to buyers.
A source added that the producer also offered limited off-grade LLDPE cargoes, hinting at potential grade switching in production. Despite this, overall supply remains tight, expected to continue supporting near-term prices.
Looking ahead, Chinese producers are expected to tighten output in the coming weeks. With sluggish domestic demand being absorbed by exports, particularly amid regional tightness in Southeast Asia, the Chinese polymer market remains buoyed, reinforcing a firm pricing environment.
Written by: Kat Yun Yun
Edited by: Farid Muzaffar