Shenhua Auction: Month-end supply cuts fail to lift sentiment as buyers stay defensive

Shenhua Baotou Coal Chemical Co., China’s largest coal-based petrochemical producer, concluded its auction 26 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 

PP and LLDPE futures on the Dalian Commodity Exchange opened lower on Wednesday, extending the recent downtrend before staging a modest intraday rebound. Both contracts still slipped below the previous session’s lows, signalling persistent caution across the physical market.

Participation in Shenhua’s latest auction was steady yet subdued, with buyers showing limited interest in both homo-PP yarn and LLDPE film. Reduced month-end supply failed to lift sentiment, as the market continued to contend with muted downstream demand. 

Despite the noticeable cut in auction volumes, deal prices remained under pressure, mirroring the cautious approach to procurement and the lack of compelling drivers to prompt restocking. Homo-PP yarn achieved a clearance rate of 69%, while LLDPE film settled at 42.9%, consistent with the selective, need-based buying patterns seen throughout the week. 

A domestic trader said ample supply and year-end financial discipline were keeping activity constrained. “There is only one month left in the year, and supply is still abundant. Buyers are focused on managing their financial position ahead of annual closing, so even with prices at relatively low levels, there is little incentive to take large positions. Confidence in the near term remains weak,” the trader noted.

The session underscores a market still searching for direction. Unless demand improves or futures provide a firmer lead, sentiment is likely to remain defensive in the coming days.

Written by: Kat Yun Yun 

Edited by: Aiman Haikal