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Shenhua Auction: Lower offers spur some selective buying; yet underlying sentiment remains weakTrading activity at Shenhua’s latest session was driven by the performance of both PP and LLDPE futures on the Dalian Commodity Exchange. Futures weakness weighed on overall sentiment, with buyers largely maintaining a wait-and-see stance despite steeper discounts. |
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Shenhua Baotou Coal Chemical Co., China’s largest coal-based petrochemical producer, concluded its auction on 3 November 2025 with mixed performance, as lower-priced cargoes drew selective interest, but overall sentiment stayed subdued.
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Product |
Auction Volume |
Deal Volume |
Auction Prices |
Deal Prices |
Deal % |
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CNY/ton |
USD/ton |
CNY/ton |
USD/ton |
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Combined and reported by CommoPlast |
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PPH Yarn |
2070 |
1545 |
6150 |
$764 |
6270-6520 |
$779-810 |
74.6% |
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LL Film |
800 |
800 |
6650 |
$827 |
6680-6910 |
$830-859 |
100.0% |
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*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. |
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Auction platform: https://www.e-chnenergy.com
Auction time: Monday – Friday, 10 AM – 12 PM
Trading activity at Shenhua’s latest session was driven by the performance of both PP and LLDPE futures on the Dalian Commodity Exchange. Futures weakness weighed on overall sentiment, with buyers largely maintaining a wait-and-see stance despite steeper discounts.
The producer trimmed auction offers by around CNY 300/ton compared to last Friday, prompting moderate replenishment from converters seeking to short cover. Still, most participants limited purchases to immediate needs and continued to negotiate for additional reductions, underscoring fragile confidence across the polyolefins complex.
LLDPE film once again outperformed homo-PP yarn, achieving full sell-through amid relatively stable spot offers in the domestic market. “Most LLDPE film offers held steady this morning, while PP cargoes saw more frequent price cuts, making the auction levels for LLDPE appear more acceptable,” one trader said.
Despite improved participation at lower levels, overall market tone remained weak. Converters remain cautious ahead of new-week offers, while producers are expected to maintain flexible pricing to encourage incremental restocking amid muted downstream demand.
Written: Kat Yun Yun
Edited: Aiman Haikal
Country
China
