Shenhua Auction: Firmer futures support strong deals at morning auction
Despite the producer implementing upward price adjustments, buyer engagement remained high, signalling a continued appetite for replenishment as the market moves deeper into the pre-Lunar New Year cycle.
Shenhua Baotou Coal Chemical Co., China’s largest coal-based petrochemical producer, concluded its auction 12 January 2026, 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 |
1250 |
6150 |
$781 |
6170-6420 |
$7883-815 |
100.0% |
|
PPH Inj |
52 |
52 |
6070 |
$771 |
6110 |
$771 |
100.0% |
|
PPBC Inj |
166 |
99 |
6020 |
$754 |
6020 |
$764 |
59.6% |
|
LL Film |
700 |
700 |
6400 |
$813 |
6440-6590 |
$818-837 |
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
Shenhua’s polyolefin auctions opened the second week of January with robust liquidity, as a sustained rebound in the futures market provided the necessary momentum for a near-total sell-through. Despite the producer implementing upward price adjustments, buyer engagement remained high, signalling a continued appetite for replenishment as the market moves deeper into the pre-Lunar New Year cycle.
PP and LLDPE futures on the Dalian Commodity Exchange (DCE) extended their mild recovery through the morning session. This exchange-led strength underpinned the physical auction floor, allowing Shenhua to raise auction prices for homo-PP yarn and LLDPE film by CNY 30–40/ton compared to the previous Friday.
While PPH yarn, PPH injection, and LLDPE film achieved 100% deal rates, the PPBC injection segment continued to face resistance. The deal rate for PPBC reached only 59.6%, indicating that buyers remain selective and price-sensitive regarding specialised grades where downstream demand has yet to mirror the recovery seen in general-purpose resins.
Local market participants noted that enquiries remained active as the market approached the mid-month threshold. However, the tone remains one of a cautious optimism. While converters are moving to shore up stocks, there is significant focus on the durability of this momentum.
"The volume moved today is encouraging, but we are assessing how much of this is driven by genuine demand versus tactical positioning ahead of the holiday," a local trader commented.
With most prime grades fully cleared at firmer levels, the immediate floor for the domestic spot market appears secure. The focus for the remainder of the week will shift toward whether the DCE futures can sustain their current trajectory and if the persistent resistance in the PPBC segment begins to spill over into the high-liquidity grades. Market participants remain in a watchful stance, gauging the extent of further upside before the seasonal slowdown begins in earnest.
Written by: Kat Yun Yun
Edited by: Aiman Haikal