Shenhua Auction: PP sales outperformed LLDPE amid stronger futures footing
The Shenhua Auction Platform exhibited mixed performance between available grades, mirroring the PP market’s firmer footing on the Dalian Commodity Exchange compared to LLDPE.
Shenhua Baotou Coal Chemical Co., China’s largest coal-based petrochemical producer, concluded its auction on 27 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 |
1135 |
1096 |
7100 |
$865 |
7120-7330 |
$868-893 |
96.6% |
|
LL Film |
870 |
416 |
7720 |
$941 |
7760-7900 |
$946-963 |
47.8% |
|
*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 exhibited mixed performance between available grades, mirroring the PP market’s firmer footing on the Dalian Commodity Exchange compared to LLDPE.
Remarkably, homo-PP yarn cargoes continued achieving transaction rates exceeding 95% even though cargoes at CNY7,020/ton, EXW China, VAT-included were no longer available. Deals were finalised at CNY20-80/ton above the previous trading day, underscoring sustained needs-based purchasing in the PP segment.
In contrast, LLDPE uptake slumped by 28.5% from the prior session, with demand remaining sluggish despite a CNY30/ton reduction in auction prices.
“Traders have been forced to offload cargoes below breakeven, particularly after procuring from domestic producers and Shandong Yulong’s auction platform,” one market player remarked. “This has further dampened interest in coal-based cargoes.”
Written by: Kat Yun Yun
Edited by: Derek Yong