Shenhua Auction: Sentiment Softens, LLDPE Outperforms PP

Shenhua Baotou Coal Chemical Co., China’s largest coal-based petrochemical producer, concluded its auction 17 September 2025, with the results for prime grades as follows:

Auction platform: https://www.e-chnenergy.com 

Auction time: Monday – Friday, 10 AM – 12 PM

Key takeaways:

PP and LLDPE futures on the Dalian Commodity Exchange moved within a narrow range this morning, as Shenhua’s latest auction drew firmer buying interest for LLDPE film while other grades eased compared with the previous session.

Market participants noted that sentiment for LLDPE remains relatively stronger than PP, underpinned by seasonal agricultural film demand and consistent offtake from packaging converters. In contrast, PP continued to face selling pressure, with most deals concluded on a need-only basis.

“There is still ongoing demand for LLDPE, while PP transactions are largely cautious,” a trader said. “With the Golden Week holiday approaching, prices are unlikely to see significant upside. Sellers are instead open to negotiations to accelerate sales and clear inventories before the break.”

Despite the softer tone, homo-PP yarn registered a deal ratio of 70.6% at Shenhua’s auction—significantly larger in volume than LLDPE film. This suggests that while PP buying remains needs-based, demand has begun to stabilize following weeks of subdued activity.

Written by: Kat Yun Yun

Edited by: Farid Muzaffar