Shenhua Auction: Lower offers slightly boost buying interest for PP and LLDPE

Shenhua Baotou Coal Chemical Co., China’s largest coal-based petrochemical producer, concluded its auction 6 November 2025, with the results for prime grades as follows:

Auction platform: https://www.e-chnenergy.com  

Auction time: Monday – Friday, 10 AM – 12 PM 

Trading activity at Shenhua’s latest session improved from the previous auction as buyers responded to modest price cuts that mirrored weakness in the futures market.

PP and LLDPE futures for the January 2026 contract on the Dalian Commodity Exchange extended losses early Thursday before staging a mild rebound by late morning. Market participants said the stronger deal volume at Shenhua’s auction reflected the CNY 100/ton markdown in homo-PP yarn and LLDPE film offers compared to Wednesday’s levels.

A local trader commented, “Some sellers in the local market also offered small discounts this morning. The lower prices have drawn limited, need-based buying, but most buyers remain cautious as there’s still no clear sign of a price bottom. Few are willing to commit to large volumes.”

Despite the modest improvement in deal volume, overall sentiment remains fragile. Ample local supply and muted downstream demand continue to cap price recovery, particularly for PP. Apart from a brief rebound in late July, homo-PP yarn has remained on a 19-week consecutive downtrend, reinforcing expectations that the market has yet to establish a firm floor.

Written: Kat Yun Yun

Edited: Farid Muzaffar