CommoPlast Article

Shenhua Baotou Coal Chemical Co., China’s largest coal-based petrochemical producer, concluded its auction 09 January 2026, with the results for prime grades as follows:

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	1269	1246	6120	$776	6160-6390	$781-810	98.2%
PPH Inj	62	42	6100	$773	6100	$773	67.7%
PPBC Inj	100	0	6050	$767	-	-	0.0%
LL Film	800	800	6360	$806	6440-6510	$816-825	100.0%
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.

Shenhua’s final auction session of the week presented a bifurcated performance across the polyolefin complex, as the momentum in the LLDPE segment held firm against a backdrop of increasing volatility in the futures market. While LLDPE film achieved a full sell-through, the PP segment began to show signs of exhaustion, most notably in the copolymer grade which failed to attract any bids.

The session was heavily influenced by price movements on the Dalian Commodity Exchange (DCE). PP and LLDPE futures opened on a modestly firmer note before paring gains toward the end of the morning session. Despite this intraday easing, the relative strength of the futures complex during the active bidding window provided sufficient cover for the producer to maintain a firm stance on asking prices.

Market participants noted that the 100% deal rate for LLDPE film was particularly significant given the broader cautious mood ahead of the weekend. However, the lack of activity in the PPBC segment—recording a 0% deal rate—indicates that buyers are increasingly sensitive to price levels in specialized grades where downstream demand remains tepid. The homo PP segment remained resilient at 98.2% sell-through rates, supported by persistent spot market increases from other local producers.

Industry observers characterised the current buying interest as "supply-side sentiment" rather than a genuine demand-led recovery. Transaction activity was largely dominated by traders seeking to replenish inventories or cover earlier forward sales. In contrast, the majority of converters and smaller distributors remained on the sidelines, adopting a defensive posture.

Looking ahead, the sustainability of these firm deal levels will likely be tested. While traders have been active in the short term, the absence of broad-based downstream participation suggests that the current rally is vulnerable to any reversal in the DCE futures complex. As the market enters the mid-January period, participants will be closely monitoring whether the current conservative mood among converters shifts toward more aggressive pre-holiday restocking.

Shenhua Auction: Homo PP & LLDPE remains robust while PPBC faces stiff resistance