Shenhua Auction: Further downward pressure observed; discounted offers spur limited buying

Shenhua Baotou Coal Chemical Co., China’s largest coal-based petrochemical producer, concluded its auction 09 December 2025, with the results for prime grades as follows:

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

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

Shenhua’s 9 December auction delivered another muted session as persistent softness in PP and LLDPE futures on the Dalian Commodity Exchange continued to weigh on sentiment. The January 2026 contracts for both products extended their decline, prompting buyers to remain cautious and limit procurement to immediate needs.

Shenhua trimmed its opening prices for homo-PP yarn and LLDPE film by CNY 50/ton from the previous session in an effort to stimulate interest amid the weakening market tone. The reductions helped lift deal volumes slightly compared with Monday, yet activity stayed modest and largely confined to small replenishment orders rather than any meaningful pick-up in confidence.

Despite the lower starting points, transaction levels slipped further, settling around CNY 20–50/ton below Monday’s ranges. The trend highlights ongoing defensive buying behaviour, with converters unwilling to commit to larger volumes while futures remain under pressure. Sellers appeared to be pacing their adjustments to prevent sharper corrections, reflecting attempts to stabilise sentiment as liquidity thins.

Homo-PP yarn recorded the strongest performance with a 66% deal ratio, supported by limited need-based restocking. PPBC attracted moderate participation, while LLDPE film lagged sharply, achieving only 8% of available volume and underscoring the deeper bearishness across the PE complex.

Market participants noted little sign of a price floor, pointing to futures-led caution that continues to steer decision-making for both traders and downstream buyers.

Overall, the today’s session shows that the market is still searching for stability, with both domestic sentiment and futures performance dictating subdued procurement behaviour. Unless futures find support or downstream confidence improves, auction activity is likely to remain constrained, and further incremental price adjustments may be needed to encourage broader participation.

Written by: Kat Yun Yun 

Edited by: Aiman Haikal