|
|
Shenhua Auction: Sell-through rates fell sharply amid softer market sentimentMarket participants pointed to an abrupt deterioration in confidence following steep losses in methanol futures—down more than 3% for the January 2026 contract—which undermined earlier speculative support for PP. |
|
Shenhua Baotou Coal Chemical Co., China’s largest coal-based petrochemical producer, concluded its 14 October auction with sharply weaker results, as renewed declines in futures trading reversed the previous session’s short-lived recovery in buying sentiment across PP and LLDPE.
|
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 |
2689 |
503 |
6380 |
$791 |
6380-6560 |
$791-813 |
18.7% |
|
PPBC inj |
166 |
165 |
6500 |
$806 |
6500 |
$806 |
99.4% |
|
LL Film |
700 |
33 |
6750 |
$837 |
6750 |
$837 |
4.7% |
|
*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
Sales at Shenhua’s latest auction slumped sharply on Tuesday, erasing the gains seen a day earlier as bearish momentum intensified in China’s polyolefin complex. Both PP and LLDPE futures extended losses on the Dalian Commodity Exchange during the morning session, dampening sentiment despite lower offers for key grades.
Homo-PP yarn sell-through rates plunged to just 18.7%, down from nearly 94% in the previous session, while LLDPE film slipped to below 5%. Only PP block copolymer injection maintained near-full clearance, supported by limited volumes and need-based restocking.
Market participants pointed to an abrupt deterioration in confidence following steep losses in methanol futures—down more than 3% for the January 2026 contract—which undermined earlier speculative support for PP.
“The market lacks clear drivers for a rebound,” one local trader said. “If prices continue to approach the pandemic levels, confidence will only deteriorate further in the near term.”
According to CommoPlast data, both PP futures and domestic spot prices have fallen below their June 2023 lows, underscoring the fragile tone and absence of conviction that continue to weigh on China’s polyolefin market.
Written: Kat Yun Yun
Edited: Aiman Haikal
