Shenhua Auction: LLDPE sales deteriorated further as buyer resistance to higher prices intensified

insight 20 Mar 2025

The Shenhua Auction Platform concluded the morning session with mixed results across polymer grades, aligning with divergent movements on the Dalian Commodity Exchange, where PP futures posted a stronger rebound compared to LLDPE.

Shenhua Baotou Coal Chemical Co., China’s largest coal-based petrochemical producer, concluded its auction on 20 March 2025, with the results for prime grades as follows:

Product	Auction Volume	Deal Volume	Auction Prices		Deal Prices		Deal %
Product	Auction Volume	Deal Volume	CNY/ton	USD/ton	CNY/ton	USD/ton	Deal %
*Combined and reported by CommoPlast*
PPH Yarn	1120	997	7100	$868	7110-7340	$869-897	89.0%
PPH Inj	200	34	6950	$850	6950	$8850	17.0%
PPBC Inj	200	66	6900	$843	6900	$843	33.0%
LL Film	1270	133	7750	$947	7750-7890	$947-964	10.5%
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.

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

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

Key takeaways:

LLDPE deal volumes remained weak, with the digestion rate declining by 2% day-on-day to 10.5%. The emergence of offers priced CNY 150/ton ($21/ton) below the previous day’s low diverted buying interest away from higher-priced cargoes, exacerbating the sluggish uptake.

In contrast, PP witnessed an improvement in sales, rising from 63.5% to 89%. This increase was attributed to a more stable domestic market, which provided buyers with greater confidence to absorb available volumes.

Written by: Kat Yun Yun

Edited by: Derek Yong

Country
China