Shenhua Auction: Modest discount spurs slight recovery in PP, LLDPE deals
Despite continued weakness in the futures market, the slight CNY30/ton reduction in Shenhua’s auction offers from the previous session appears to have rekindled some interest
Shenhua Baotou Coal Chemical Co., China’s largest coal-based petrochemical producer, concluded its morning auction session on 16 July 2025 with a modest improvement in transaction volumes for select PP and LLDPE grades, supported by price concessions that brought offers closer to prevailing market expectations.
|
Product |
Auction Volume |
Deal Volume |
Auction Prices |
Deal Prices |
Deal % |
||
|
CNY/ton |
USD/ton |
CNY/ton |
USD/ton |
||||
|
Combined and reported by CommoPlast |
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|
PPH Yarn |
1950 |
1249 |
6920 |
$853 |
6940-7130 |
$855-879 |
64.1% |
|
PPH Fiber |
66 |
0 |
7150 |
$881 |
- |
- |
0.0% |
|
PPBC |
383 |
176 |
6670 |
$822 |
6670-7050 |
$822-869 |
46.0% |
|
LL Film |
500 |
406 |
6920 |
$853 |
6950-7100 |
$857-875 |
81.2% |
|
HD Film |
100 |
0 |
7550 |
$931 |
- |
- |
0.0% |
|
*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:
Despite continued weakness in the futures market, the slight CNY30/ton reduction in Shenhua’s auction offers from the previous session appears to have rekindled some interest, particularly among buyers seeking to replenish immediate needs. This price adjustment narrowed the gap between Shenhua’s offers and broader market levels, encouraging cautious re-entry from sidelined participants.
Futures contracts for key PP and LLDPE grades on the Dalian Commodity Exchange remained under pressure, trading within a narrow, bearish range throughout the morning. However, the auction platform saw relatively stronger buying interest, with LLDPE film achieving an 81.2% deal success rate, while PPH yarn also recorded a 64.1% transaction rate.
“As many buyers had delayed procurement over the past couple of days, today’s slight discount made Shenhua’s prices appear more palatable,” a local trader commented. “Although the transaction scale remains moderate, the response suggests that further downside may be limited—small price movements are still capable of prompting demand.”
Written: Kat Yun Yun
Edited: Rochelle Nguyen