CommoPlast Article

Shenhua Baotou Coal Chemical Co., China’s largest coal-based petrochemical producer, concluded its auction 19 December 2025, with the results for prime grades as follows:

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	800	234	6050	$761	6050-6090	$761-766	29.3%
LL Film	700	48	6370	$801	6370-6380	$801-802	6.9%
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.

Purchasing activity at Shenhua’s daily auction tumbled to critical lows on Friday, as May 2026 PP and LLDPE futures on the Dalian Commodity Exchange continued to slide. The persistent weakness in the futures market, combined with the approaching weekend, prompted converters to adopt a defensive stance, leaving LLDPE film deals almost entirely stalled.

In a notable move, Shenhua raised the LLDPE film auction floor by CNY 120/ton from the previous session to CNY 6,370/ton, reflecting an attempt to reclaim margins amid reports of supply-side discipline. These included swing plants at Ningxia Baofeng and Shandong Yulong shifting output to HDPE, as well as an unexpected shutdown at Shandong Luqing.

The price adjustment, however, encountered immediate resistance, with the LLDPE film deal rate plunging to just 6.9%. Market participants cited the increase as misaligned with the weakening futures curve and the ample availability of domestic supply.

Timing also played a role. With the Lunar New Year restocking window narrowing and most essential year-end requirements already met, converters showed little urgency to replenish inventories at higher levels. Analysts noted that while recent production shifts towards HDPE have reduced LLDPE output, the physical shortage has yet to materialize, prompting buyers to await a potential price reset.

Sentiment remains broadly bearish, with scepticism growing over the effectiveness of production discipline as a near-term price driver. Local traders anticipate that the low clearance rate in Friday’s session could lead to a notable downward adjustment in opening bids on Monday, as producers face mounting inventory pressure.

Shenhua Auction: Aggressive price hikes backfire as buyers retreat ahead of weekend