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Shenhua Baotou Coal Chemical Co., China’s largest coal-based petrochemical producer, concluded its auction on 03 December 2025, reflecting a defensive early-month tone in the domestic PP and LLDPE markets.

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

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

PP and LLDPE deals slowed on Wednesday, as softer Dalian Commodity Exchange futures and a broadly cautious mood kept buyers on the sidelines.

LLDPE film, even after a modest CNY 20/ton discount, continued to face resistance, underscoring the limited appetite for PE grades at the moment. PP saw a more mixed performance, as homo-PP yarn held up relatively well, attracting steady interest despite the absence of the sharper offers seen earlier in the week. 

Injection grades were almost fully cleared, pointing to pockets of targeted replenishment, while block copolymer grades again struggled to find traction, reflecting highly selective buying.

Market participants said most activity was strictly needs-based, with buyers closely monitoring futures swings, domestic inventories, and short-term downstream orders before stepping in. “Transactions are largely driven by immediate requirements, and we remain cautious on market direction,” a local trader said.

Overall, the session reflects a market in defensive balance. Selective PP interest hints at some underlying confidence, but muted LLDPE volumes show that many buyers still prefer to wait for clearer signals. Early-month sentiment is expected to remain guarded unless stronger downstream demand, firmer futures, or fresh drivers emerge in the coming days.

Written by: Kat Yun Yun 

Edited by: Aiman Haikal

Country
China