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Shenhua Baotou Coal Chemical Co., China’s largest coal-based petrochemical producer, concluded its auction 26 August 2025, with the results for prime grades as follows:

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

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

Key Takeaways:

Polyolefin futures on the Dalian Commodity Exchange held within a narrow band on Tuesday, with LLDPE showing marginally stronger momentum than PP. The day’s Shenhua auction outcomes mirrored this divergence: LLDPE film achieved a full sell-out, while demand for homo-PP yarn eased compared with the prior session.

Context, however, tempers the picture. LLDPE film volumes were limited to just 300 tons, versus 1,269 tons for homo-PP yarn. Despite the softer tone, PP still managed an 86.6% deal ratio—evidence that underlying buying appetite has not disappeared, though it remains constrained.

“Real buying activity from converters remains thin as month-end nears,” one trader observed, noting that sentiment may stay subdued into September despite the potential seasonal pickup in demand ahead of the National Day holiday.

On the cost front, market participants are closely monitoring government policy. Any potential easing of coal production curbs following the 3 September military parade could lower feedstock costs for coal-based producers, adding another layer of uncertainty to price dynamics.

With sentiment clouded by both weak downstream activity and uncertainty over feedstock dynamics, most market players are adopting a cautious stance, awaiting clearer signals before taking fresh positions.

Written by: Kat Yun Yun 

Edited by: Farid Muzaffar

Country
China