CommoPlast Article

Shenhua Baotou Coal Chemical Co., China’s largest coal-based petrochemical producer, concluded its 19 September auction with mixed results, as linear low-density polyethylene (LLDPE) film sold out while polypropylene (PP) demand faltered.

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	950	518	6700	$834	6810-6870	$848-855	54.5%
BOPP	300	0	6750	$840	-	-	0.0%
PPBC Inj	200	0	6550	$815	-	-	0.0%
LL Film	300	300	7030	$875	7070	$880	100.0%
HD Film	100	0	7150	$890	-	-	0.0%
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.

Shenhua’s auction results underscored the widening split between the two products, with PP deals falling sharply compared to the previous session, while LLDPE film once again sold out.

The firm showing in LLDPE was attributed to seasonal agricultural and packaging demand, combined with reduced import arrivals that eased supply pressure. In contrast, PP demand faltered without the support of discounted yarn cargoes, leaving higher-priced material difficult to place.

“LLDPE enjoys some short-term support compared with PP, but overall, both markets are struggling to generate momentum for a meaningful rebound,” a local trader said.

With futures subdued and the Golden Week holiday approaching, sentiment across the polyolefin complex is likely to stay cautious.

Shenhua Auction: LLDPE clears in full while higher-priced PP cargoes struggle