Shenhua Auction: Discounted LLDPE Prices Draw Interest Amid Weakened Market Sentiment
The more attractive price level managed to stimulate some buying interest despite the overall muted market sentiment.
Shenhua Baotou Coal Chemical Co., China’s largest coal-based petrochemical producer, concluded its auction on 15 May 2025, with the results for prime grades as follows:
|
Product |
Auction Volume |
Deal Volume |
Auction Prices |
Deal Prices |
Deal % |
||
|
CNY/ton |
USD/ton |
CNY/ton |
USD/ton |
||||
|
Combined and reported by CommoPlast |
|||||||
|
PPH Yarn |
1576 |
948 |
7100 |
$871 |
7130-7370 |
$875-905 |
60.2% |
|
PPBC Inj |
739 |
333 |
6800 |
$835 |
6800-7450 |
$835-914 |
45.1% |
|
LL Film |
591.3 |
591.3 |
7150 |
$878 |
7160-7770 |
$879-954 |
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. |
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Auction platform: https://www.e-chnenergy.com
Auction time: Monday – Friday, 10 AM – 12 PM
Key takeaways:
Shenhua’s latest auction for polypropylene (PP) recorded comparatively weaker performance than that of linear low-density polyethylene (LLDPE), as market participants attributed the stronger LLDPE sales to the CNY30/ton discount offered compared to the previous day. The more attractive price level managed to stimulate some buying interest despite the overall muted market sentiment.
A local trader commented, “Many local sellers are still holding firm on prices, with some attempting price hikes of up to CNY100/ton for LLDPE this morning. However, with crude oil prices and futures markets weakening, buying interest has notably subsided today, making auction cargoes appear more reasonably priced for small-scale replenishments. We are closely monitoring market developments next week to assess the sustainability of rebound trend.”
Written by: Kat Yun Yun
Edited by: Rochelle Nguyen