Shenhua Auction: LLDPE sales softened as futures rally stagnated, but PP demand held firm
Sentiment on the Shenhua Auction Platform turned more cautious as the rebound on the Dalian Commodity Exchange lost momentum from the previous session. This led to a decline in LLDPE procurements
Shenhua Baotou Coal Chemical Co., China’s largest coal-based petrochemical producer, concluded its auction on 11 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 |
1350 |
1342 |
7080 |
$856 |
7110-7270 |
$8860-879 |
99.4% |
|
PPBC Inj |
210 |
210 |
6900 |
$834 |
6960-6970 |
$841-843 |
100.0% |
|
LL Film |
770 |
450 |
7300 |
$883 |
7360-7420 |
$890-897 |
58.4% |
|
*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. |
|||||||
Auction platform: https://www.e-chnenergy.com
Auction time: Monday – Friday, 10 AM – 12 PM
Key takeaways:
Sentiment on the Shenhua Auction Platform turned more cautious as the rebound on the Dalian Commodity Exchange lost momentum from the previous session. This led to a decline in LLDPE procurements, once again highlighting its performative contrast with the PP segment.
In the LLDPE segment, transaction rates swung down the previous session’s 100% to 58.4% as bearish sentiment in the wider domestic sector reasserted pressure. In the spot market, offers had declined by an average of CNY200/ton on a week-on-week basis, reinforcing resistance to fresh restocking.
Meanwhile, upcoming events—including ChinaPlas and Labour Day in early May—kept market participants alert, with focus turning toward effective inventory management ahead of these key periods.
Nonetheless, PP cargoes saw more robust drawdowns at 99.4%, reflecting ongoing needs-based purchases and relatively better sentiments in the broader local market.
Written by: Kat Yun Yun
Edited by: Derek Yong