CommoPlast

Shenhua Auction: Weak post-holiday confidence sap sell-through rates

Shenhua’s first trading session after the Golden Week holiday highlighted fragile market confidence, as PP and LLDPE futures on the Dalian Commodity Exchange extended their decline during the morning session.



Shenhua Baotou Coal Chemical Co., China’s largest coal-based petrochemical producer, concluded its 9 October auction with lacklustre results, as continued weakness in futures trading weighed on buying interest across key polyolefin grades.

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

2066

700

6500

$807

6500-6790

$807-843

33.9%

PPBC inj

200

0

6450

$801

-

-

0.0%

LL Film

590

226

6900

$856

7030

$873

38.3%

*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

Shenhua’s first trading session after the Golden Week holiday highlighted fragile market confidence, as PP and LLDPE futures on the Dalian Commodity Exchange extended their decline during the morning session. The soft futures performance curtailed buying interest, particularly for block copolymer grades, which saw no concluded deals.

Homo-PP yarn achieved a modest clearance rate of 33.9%, with prices down by CNY 200/ton from the final pre-holiday auction. Despite the price adjustment, demand remained thin, reflecting limited restocking appetite among downstream converters. LLDPE film also faced weak interest, clearing less than 40% of offered volumes even after prices fell CNY 180/ton compared with pre-holiday levels.

Market participants characterised post-holiday sentiment as subdued, citing persistent uncertainty over near-term fundamentals. “The post-holiday atmosphere is understandably quiet,” one trader said. “But the bigger concern is Q4—without clear drivers for a rebound, selling conditions are likely to remain difficult.”

 

Written: Kat Yun Yun 

Edited: Aiman Haikal

 

 


Country
China