Shenhua Auction: LLDPE and PP performance split, echoing spot market trends
The LLDPE segment continued to underperform PP on the Shenhua Auction Platform, even after a recovery in the futures market. This contrast echoed trends in the spot market, where LLDPE prices remained in decline for a 14th week
Shenhua Baotou Coal Chemical Co., China’s largest coal-based petrochemical producer, concluded its auction on 02 April 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 |
1400 |
1399 |
7020 |
$855 |
7080-7360 |
$862-896 |
99.9% |
|
PPH Inj |
100 |
0 |
7050 |
$858 |
- |
- |
0.0% |
|
PPBC Inj |
100 |
100 |
7700 |
$937 |
7750-7760 |
$943-945 |
100.0% |
|
LL Film |
950 |
472 |
7700 |
$937 |
7700-7800 |
$937-949 |
49.7% |
|
*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 LLDPE segment continued to underperform PP on the Shenhua Auction Platform, even after a recovery in the futures market. This contrast echoed trends in the spot market, where LLDPE prices remained in decline for a 14th week while PP prices had rebounded.
The LLDPE segment’s weakness was underlined by a 6.6% reduction in uptake, reflecting poor acceptance even after a CNY30/ton discount. Meanwhile, the uptake on PP cargoes fell just 0.1% short of solid, marking an improvement from 82.3% in the previous session.
"The divergent performance reflects contrasting early April outlooks for each grade," a market participant observed. "While the LLDPE sector may face the prospect of a stagnating agricultural film season, PP could benefit from renewed export opportunities as key Muslim markets return from the Eid holidays."
Written by: Kat Yun Yun
Edited by: Derek Yong