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Shenhua Baotou Coal Chemical Co., China’s largest coal-based petrochemical producer, concluded its 13 October auction with stronger interest in PP grades compared with LLDPE, as participants tracked futures movements and feedstock developments cautiously.

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

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

Key takeaways

Shenhua’s latest trading session showed PP grades outperformed LLDPE in achieving clearance rates above 90% across both homo-PP yarn and PP block copolymer injection. In contrast, LLDPE film demand fell sharply, with only a fraction of offered lots finding buyers despite a CNY 30/ton reduction in auction price.

On the Dalian Commodity Exchange, both PP and LLDPE futures traded lower during the morning session, though losses were more pronounced for LLDPE. Market sources attributed PP’s relative resilience to speculative activity in methanol futures, as US sanctions on Iranian producers fuelled concerns over potential supply disruptions.

“The domestic market is showing the same pattern—PP transactions are better than PE, but buying remains cautious,” said a local trader. “Some converters are restocking on a need basis, yet it’s too early to call a recovery or a firm bottom.”

While short-term PP sentiment showed mild improvement, the overall tone across the polyolefin complex stayed guarded. Participants are expected to monitor futures and feedstock movements closely before making fresh procurement decisions later this week.

Written: Kat Yun Yun 

Edited: Aiman Haikal

Country
China