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Shenhua Auction: Weaker futures push auction prices lower yet caution lingersPP and LLDPE futures for the January 2026 contract on the Dalian Commodity Exchange extended their losses on Wednesday, adding fresh downward pressure to Shenhua’s daily auction. |
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Shenhua Baotou Coal Chemical Co., China’s largest coal-based petrochemical producer, concluded its auction 10 December 2025, with the results for prime grades as follows:
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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 |
1500 |
1065 |
6000 |
$752 |
6000-6150 |
$752-771 |
71.0% |
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PPBC |
296.3 |
163.3 |
5750 |
$721 |
5750-6030 |
$721-756 |
55.1% |
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LL Film |
550 |
43 |
6500 |
$815 |
6500 |
$815 |
7.8% |
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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
PP and LLDPE futures for the January 2026 contract on the Dalian Commodity Exchange extended their losses on Wednesday, adding fresh downward pressure to Shenhua’s daily auction. Auction prices for both homo-PP yarn and LLDPE film were reduced by another CNY 50/ton from the previous session in response to the weaker futures curve.
Lower pricing helped lift participation for PPH yarn, pushing its deal rate up to 71%, even with a slightly larger auction volume. However, activity remained largely needs-based, with buyers showing little inclination to move beyond immediate procurement. Deal levels for both PP and LLDPE were concluded CNY 30–50/ton below Monday’s transactions, signalling continued softness in the spot market.
LLDPE film, despite the reductions, posted a deal rate of only 7.8%, underscoring persistent resistance among buyers amid expectations of further declines.
“We’re seeing some movement at lower levels, but without clearer signs of stabilisation, prices are likely to remain under pressure. We are staying cautious,” a market participant said.
With futures trending lower and sentiment still subdued, buying behaviour is expected to remain restrained unless the market establishes a firmer floor in the coming sessions.
Written by: Kat Yun Yun
Edited by: Farid Muzaffar
Country
China
