CommoPlast Article

Shenhua Baotou Coal Chemical Co., China’s largest coal-based petrochemical producer, concluded its auction 08 January 2026, 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	1470	1388	5950	$753	6080-6370	$770-806	94.4%
PPH Inj	100	100	6050	$766	6100-6110	$772-774	100.0%
LL Film	800	800	6200	$785	6360-6510	$805-824	100.0%
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.

Shenhua’s latest auction session recorded strong sell-through rates across both PP and LLDPE segments, signalling that buyers are increasingly willing to accept higher price levels to secure immediate restocking needs. The momentum in China’s domestic polyolefin market extended into the second half of the week, as a sustained rally in futures markets continues to bolster physical procurement.

PP and LLDPE futures on the Dalian Commodity Exchange (DCE) continued to firm, extending their recent rebound with modest gains. The PP contract notably outperformed, breaking above early-December 2025 levels and reaching its highest point since late October 2025. This exchange-led strength provided the necessary confidence for the producer to implement further price adjustments.

Despite the producer raising LLDPE film auction prices by another CNY 50/ton from the previous session, the grade achieved a 100% deal rate, a sharp recovery compared to the resistance seen earlier in the week. Market participants noted that the "wait-and-see" sentiment that characterised the opening of the year is giving way to active replenishment. However, the tone remains pragmatic; while deal volumes are encouraging, converters are largely prioritising safety stocks ahead of the Lunar New Year rather than initiating structural inventory builds.

Traders and converters reported steady demand, though a sense of caution persists following the rapid price run-up. "The speed of the rebound has caught some off guard," a local player observed. "While we are moving volume now, any further aggressive hikes from producers could trigger a fresh wave of resistance if the futures rally shows signs of fatigue."

Looking ahead, industry observers expect producers to continue testing the upper limits of buyer acceptance in the near term. The sustainability of this firming trend will likely hinge on a visible maintenance of downstream industrial activity and whether the DCE futures can maintain their current upward trajectory as the market approaches the seasonal holiday slowdown in February.

Shenhua Auction: Deal volume remains encouraging as rebound momentum persists