CommoPlast Article

Shenhua Baotou Coal Chemical Co., China’s largest coal-based petrochemical producer, concluded its auction on 5 November 2025 with weak results, as persistent losses in PP and LLDPE futures weighed heavily on sentiment and sharply curtailed buying activity.

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	2000	346	6180	$767	6360-6450	$789-801	17.3%
LL Film	600	34	6650	$825	6650	$825	5.7%
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.

Trading sentiment deteriorated sharply on Wednesday as PP and LLDPE futures on the Dalian Commodity Exchange extended losses, with both contracts hitting their lowest levels since 2020. The continued futures slump eroded confidence and kept converters on the sidelines, resulting in the weakest auction performance in recent weeks.

Deal volumes for both homo-PP yarn and LLDPE film fell steeply from the previous session. Despite Shenhua maintaining its LLDPE film offers unchanged, buyers largely abstained, citing more attractive discounts in the local spot market. “There’s simply no urgency to buy when spot prices are falling faster than auction levels,” one trader commented.

The results highlight deepening caution across the polymer markets, as participants brace for further downside amid bearish futures, sluggish demand, and ongoing cost weakness. Most players expect Shenhua to face continued selling pressure in the near term, with sentiment unlikely to recover until futures show clearer signs of stabilisation.

Shenhua Auction: Sharp futures decline drags down buying interest