Shenhua Auction: PP traded firmly while LLDPE lagged behind
The latest auction session at Shenhua closed on a cautiously positive note for homo-PP grades, which saw a noticeable uptick in buying interest relative to the previous round.
Shenhua Baotou Coal Chemical Co., China’s largest coal-based petrochemical producer, concluded its auction on 28 May 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 |
1116 |
900 |
6950 |
$854 |
7010-7130 |
$862-876 |
80.6% |
|
PPBC Inj |
583 |
309 |
6700 |
$824 |
6700-7300 |
$824-897 |
53.0% |
|
LL Film |
470 |
50 |
6900 |
$848 |
7080 |
$870 |
10.6% |
|
*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 latest auction session at Shenhua closed on a cautiously positive note for homo-PP grades, which saw a noticeable uptick in buying interest relative to the previous round. In particular, PPH yarn recorded a robust deal ratio of over 80%, underpinned by more resilient futures contracts on the Dalian Commodity Exchange.
Conversely, interest in LLDPE film remained conspicuously muted. Despite a modest CNY 20/ton reduction in the auction price, the deal volume was limited to just 50 tons, translating to a low conversion rate of 10.6%. The performance marked a return to market conditions last seen in April, where LLDPE lagged other grades due to ample supply and persistently soft demand.
A market source commented, “This reflects the deeply entrenched lack of confidence in the market. Unless we see a clear and compelling driver to lift sentiment, we will continue to adopt a cautious stance in the near term.”
Written: Kat Yun Yun
Edited: Rochelle Nguyen