Shenhua Auction: Lower Prices and Futures Rebound Support PP, LLDPE Deals
There were firmer buying interest after Shenhua offered lower auction priced cargoes, with PP Homo yarn down CNY150/ton and LLDPE film trimmed by CNY30/ton from previous levels.
Shenhua Baotou Coal Chemical Co., China’s largest coal-based petrochemical producer, concluded its auction 15 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 |
1250 |
1140 |
6550 |
$814 |
6550-6920 |
$814-860 |
91.2% |
|
BOPP |
200 |
0 |
6900 |
$858 |
- |
- |
0.0% |
|
PPBC Inj |
200 |
0 |
6650 |
$827 |
- |
- |
0.0% |
|
LL Film |
360 |
360 |
6870 |
$854 |
6930-7110 |
$861-884 |
100.0% |
|
HD Film |
100 |
0 |
7200 |
$895 |
- |
- |
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
PP and LLDPE futures on the Dalian Commodity Exchange rebounded in the morning session, lending support to Shenhua’s auction performance for homo-PP yarn and LLDPE film.
Stronger buying interest emerged after Shenhua lowered its auction prices, with homo-PP yarn cut by CNY150/ton and LLDPE film trimmed by CNY30/ton. The discounts helped secure some deals, though most purchases remained on a needs-only basis, underscoring the lack of a broader demand recovery.
Market sentiment remains cautious as participants navigate the second half of September. Uncertainty over both pre- and post-holiday demand continues to weigh on confidence, with many buyers reluctant to commit to bulk purchases. While firmer futures and cheaper offers provided short-term support, the outlook is tempered by expectations that prices may soften again once the National Day holiday ends in early October.
This restrained approach reflects familiar seasonal trends, where demand typically firms in late September but fades after the holiday. For now, the market appears to be in a holding pattern, with buyers prioritizing flexibility over forward stocking.
Written by: Kat Yun Yun
Edited by: Farid Muzaffar