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Shenhua Baotou Coal Chemical Co., China’s largest coal-based petrochemical producer, concluded its auction 02 December 2025, with the results for prime grades as follows:

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

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

Shenhua’s early-month auction reflected selective buying amid stabilizing futures. PP and LLDPE futures for the January 2026 contract on the Dalian Commodity Exchange traded within a narrow range, edging slightly higher toward the end of the morning session, as market participants sought early signs of near-term demand.

LLDPE film saw full clearance, with all offered cargoes sold despite the absence of lower-priced lots, pointing to restocking-driven purchases. In contrast, PPH yarn auction prices held steady, though deal volumes dipped slightly to 89.2% of offered lots, reflecting persistent buyer caution.

Cautious activity was attributed to the start of the new month, with sellers maintaining firm offers while buyers weighed price levels against futures trends, downstream margins, and available inventories. “There’s no panic buying yet,” a local trader said. “We’re monitoring closely to see if prices stabilize further and potentially form a bottom.”

Market observers noted that auction activity is being influenced by several near-term factors: substantial domestic inventory, firm upstream ethylene costs limiting deeper discounts, and uncertainty over upcoming Lunar New Year demand and Q1 import arrivals. LLDPE’s full clearance suggests immediate restocking needs are being addressed, whereas subdued PP volumes indicate buyers remain hesitant to commit beyond short-term requirements.

Overall, Shenhua’s auction illustrates a market in cautious equilibrium: selective buying supports early-month price stability, but broader traction will depend on downstream order flow, futures movements, and upcoming supply developments over the coming weeks.

Written by: Kat Yun Yun 

Edited by: Farid Muzaffar

Country
China