CommoPlast Article

Shenhua Baotou Coal Chemical Co., China’s largest coal-based petrochemical producer, concluded its auction on 28 May 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	1116	900	6950	$854	7010-7130	$862-876	80.6%
PPBC Inj	583	309	6700	$824	6700-7300	$824-897	53.0%
LL Film	470	50	6900	$848	7080	$870	10.6%
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.

The latest auction session at Shenhua closed on a cautiously positive note for homo-PP grades, which saw a noticeable uptick in buying interest relative to the previous round. In particular, PPH yarn recorded a robust deal ratio of over 80%, underpinned by more resilient futures contracts on the Dalian Commodity Exchange.

Conversely, interest in LLDPE film remained conspicuously muted. Despite a modest CNY 20/ton reduction in the auction price, the deal volume was limited to just 50 tons, translating to a low conversion rate of 10.6%. The performance marked a return to market conditions last seen in April, where LLDPE lagged other grades due to ample supply and persistently soft demand.

A market source commented, “This reflects the deeply entrenched lack of confidence in the market. Unless we see a clear and compelling driver to lift sentiment, we will continue to adopt a cautious stance in the near term.”

Shenhua Auction: PP traded firmly while LLDPE lagged behind