Shenhua Auction: LLDPE sales jumped as buyers returned for discounted cargo
While the Shenhua Auction Platform recorded an improvement in uptake rates, sentiments remained restrained, especially as the Dalian Commodity Exchange posted a gradual decline throughout the morning session.
Shenhua Baotou Coal Chemical Co., China’s largest coal-based petrochemical producer, concluded its auction on 28 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 |
970 |
968 |
7100 |
$864 |
7150-7340 |
$870-893 |
99.8% |
|
LL Film |
1000 |
800 |
7760 |
$945 |
7760-7840 |
$945-954 |
80.0% |
|
*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. |
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Auction platform: https://www.e-chnenergy.com
Auction time: Monday – Friday, 10 AM – 12 PM
Key takeaways:
While the Shenhua Auction Platform recorded an improvement in uptake rates, sentiments remained restrained, especially as the Dalian Commodity Exchange posted a gradual decline throughout the morning session.
In the LLDPE segment, the procurement rate climbed from 47.8% to 80% even after a 130-ton increase in auction volumes, reflecting stronger needs-based purchasing. However, deal prices in the segment slipped by CNY60/ton from the previous session, signalling the producer’s loosening pricing strategy.
“Added caution arose from the producer’s elevated allocations compared to PP, a possible indicator of selling pressure,” a market player remarked. “While month-end allocations typically hover in the hundreds, the session saw LLDPE volumes reach 1,000 tons.”
Written by: Kat Yun Yun
Edited by: Derek Yong