Shenhua Auction: LLDPE outperforms PP as buyers stay cautious ahead of month-end
Trading sentiment was cautious on Monday, mirroring the diverged performance on the Dalian Commodity Exchange. LLDPE futures held steady within a narrow range, supporting firm demand for film grade and resulting in full sales.
Shenhua Baotou Coal Chemical Co., China’s largest coal-based petrochemical producer, concluded its auction on 27 October 2025 with mixed results, as LLDPE film achieved full sell-through while PP deals weakened amid softer sentiment.
|
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 |
1650 |
1248 |
6250 |
$778 |
6280-6600 |
$782-821 |
75.6% |
|
PPBC Inj |
200 |
0 |
6450 |
$803 |
- |
- |
0.0% |
|
PPH Inj |
100 |
0 |
6270 |
$780 |
- |
- |
0.0% |
|
LL Film |
600 |
600 |
6700 |
$834 |
6750-6900 |
$840-859 |
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
Trading sentiment was cautious on Monday, mirroring the diverged performance on the Dalian Commodity Exchange. LLDPE futures held steady within a narrow range, supporting firm demand for film grade and resulting in full sales. In contrast, PP futures softened slightly, curbing appetite for homo-yarn and injection grades.
Compared to last Friday, total PP deal volume declined as converters limited purchases to immediate production requirements. Market participants noted subdued buying momentum amid an absence of clear direction in the futures market. Attention has now shifted to November offers to assess whether the current correction can stabilise.
With the month-end approaching, Shenhua is expected to face limited selling pressure, and prices are likely to remain steady in the near term. However, persistent resistance to higher PP prices highlights fragile sentiment despite broader market stability in polyolefins.
The results indicate a softer start to the week, contrasting with Friday’s firmer performance when stronger crude and futures buoyed sentiment. While LLDPE continues to show resilience with consistent sell-through, PP grades remain under pressure, underscoring the market’s cautious tone amid fluctuating energy benchmarks and uncertain demand recovery.
Written by: Kat Yun Yun
Edited by: Aiman Haikal