CommoPlast Article

Shenhua Baotou Coal Chemical Co., China’s largest coal-based petrochemical producer, concluded its 28 August 2025 auction with divergent results, as PP retained steady interest while higher-priced LLDPE offers failed to draw any participation.

Product	Auction Volume	Deal Volume	Auction Prices		Deal Prices		Deal %
Product	Auction Volume	Deal Volume	CNY/ton	USD/ton	CNY/ton	USD/ton	Deal %
*Combined and reported by CommoPlast*
PPH Yarn	616	566	6850	$848	6850-6990	$848-865	91.9%
LL Film	120	0	7270	$900	-	-	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.

Futures for both PP and LLDPE on the Dalian Commodity Exchange traded in a narrow, subdued range, offering little direction to the physical market. Against this backdrop, converters focused on meeting only immediate requirements, while higher LLDPE offers were firmly resisted.

PP homo yarn recorded a 91.9% deal ratio, with transaction levels slipping by CNY10–30/ton from the previous session. The result highlights the presence of underlying demand, though purchasing remained cautious and price sensitive.

LLDPE film, by contrast, saw no uptake. Shenhua raised its offer by CNY70/ton to CNY7,270/ton, but the adjustment proved untenable in a market where several local producers were already granting CNY50/ton discounts in early trading. The move rendered Shenhua’s pricing uncompetitive and effectively shut out fresh buying.

The lack of interest in LLDPE marks a clear turning point. Earlier this week, the grade achieved full sell-outs at CNY7,000–7,200/ton, even as futures weakened. Today’s outcome confirms that converters are unwilling to chase values beyond the CNY7,200/ton threshold, particularly amid month-end caution and subdued downstream activity.

Shenhua Auction: Month-end softness weighs on demand, higher lldpe prices meet resistance