Shenhua Auction: Need-based buying persists amid further price weakness
Shenhua’s morning auction maintained a selective, need-driven tone. LLDPE film achieved moderate clearance, while homo-PP yarn attracted steady participation.
Shenhua Baotou Coal Chemical Co., China’s largest coal-based petrochemical producer, concluded its auction 11 September 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 |
1150 |
683 |
6750 |
$839 |
6750-6940 |
$839-863 |
59.4% |
|
BOPP |
200 |
0 |
6950 |
$864 |
- |
- |
0.0% |
|
PPBC Inj |
100 |
0 |
6850 |
$851 |
- |
- |
0.0% |
|
LL Film |
450 |
200 |
6900 |
$858 |
6950-6960 |
$864-865 |
44.4% |
|
HD Film |
100 |
0 |
7250 |
$901 |
- |
- |
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. |
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Auction platform: https://www.e-chnenergy.com
Auction time: Monday – Friday, 10 AM – 12 PM
Key takeaways
Shenhua’s morning auction maintained a selective, need-driven tone. LLDPE film achieved moderate clearance, while homo-PP yarn attracted steady participation. Other grades, including PP block copolymer, BOPP, and HD film, saw little to no uptake.
The session was influenced by continued weakness in PP and LLDPE futures on the Dalian Commodity Exchange, which extended losses during Thursday’s morning session. This pressured auction prices, with PP homo yarn closing CNY10–20/ton ($1–3/ton) lower than Wednesday, and LLDPE film slipping CNY150–180/ton ($21–25/ton).
Market sources highlighted that offers above CNY7,000/ton ($870/ton excluding VAT) struggled to attract buyers, reflecting subdued confidence. “Despite stable spot prices, the ongoing slide in LLDPE futures since May has limited appetite, even for essential purchases,” a local trader noted.
Overall, the auction underscored that market activity remains largely need-based. While lower offers provided some stimulus, sentiment continues to be cautious, with participants closely monitoring ongoing September supply dynamics and futures trends before committing to further procurement.
Written: Kat Yun Yun
Edited: Aiman Haikal