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Shenhua Baotou Coal Chemical Co., China’s largest coal-based petrochemical producer, concluded its auction 24 December 2025, with the results for prime grades as follows:

Auction platform: https://www.e-chnenergy.com  

Auction time: Monday – Friday, 10 AM – 12 PM 

Auction results underscored a widening divergence between PP and LLDPE, as a disconnect persisted between futures-led sentiment and conditions in the local spot market. Although PP and LLDPE futures on the Dalian Commodity Exchange posted modest rebounds during the morning session, the improvement failed to translate into a broad-based recovery in physical buying interest.

PP recorded a high deal rate, largely supported by a CNY 10/ton reduction from the previous auction. This marginal adjustment, aligned with the futures rebound, prompted buyers who had postponed purchases in recent sessions to secure limited volumes. Market participants stressed, however, that buying activity remained strictly need-based, with year-end caution continuing to cap overall demand.

In contrast, LLDPE film continued to face pronounced resistance despite a firmer futures tone. Shenhua’s decision to maintain auction prices at CNY 6,180/ton left offers uncompetitive against the local distribution market, where spot material was still available at deeper discounts. As a result, buyers saw little incentive to participate in the auction, preferring traditional trading channels, which weighed heavily on deal momentum.

The near-term outlook for the Chinese domestic market remains fragile. While PP has found a temporary floor through selective price adjustments, LLDPE continues to face downside pressure amid weak demand and discounted spot availability. Market participants remain cautious, noting that broader stabilization is unlikely unless auction pricing better reflects prevailing spot-market levels.

Written by: Kat Yun Yun 

Edited by: Aiman Haikal

Country
China