Shenhua Auction: Homo-PP sales outperformed LLDPE amid diverged futures performance
The Shenhua Auction Platform opened on a stable-to-firm footing, supported by the previous day’s strong sales. A modest rebound on the Dalian Commodity Exchange bolstered buying confidence
Shenhua Baotou Coal Chemical Co., China’s largest coal-based petrochemical producer, concluded its auction on 14 March 2025, with the results for prime grades as follows:
|
Product |
Auction Volume |
Deal Volume |
Auction Prices |
Deal Prices |
Deal % |
||
|
CNY/ton |
USD/ton |
CNY/ton |
USD/ton |
||||
|
Combined and reported by CommoPlast |
|||||||
|
PPH Yarn |
1028 |
961 |
7120 |
$870 |
7140-7330 |
$873-896 |
93.5% |
|
PP Thinwall |
207 |
207 |
7200 |
$880 |
7230 |
$884 |
100.0% |
|
LL Film |
650 |
430 |
7920 |
$968 |
7950-8010 |
$972-979 |
66.2% |
|
*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
Key takeaways:
The Shenhua Auction Platform opened on a stable-to-firm footing, supported by the previous day’s strong sales. A modest rebound on the Dalian Commodity Exchange bolstered buying confidence, leading to moderate-to-robust transactions across available grades.
However, demand diverged notably between the homo-PP and LLDPE sectors, with LLDPE film facing weaker acceptance. This was largely due to the absence of lower-end auction prices at CNY7,900/ton EXW China, VAT included ($966/ton, VAT excluded), which had appeared in the previous session.
The contrast between the two markets was deepened by a difference in performance in the futures market, where PP contracts posted stronger gains than LLDPE ones.
Written by: Kat Yun Yun
Edited by: Derek Yong