Shenhua Auction: LLDPE clears in full while higher-priced PP cargoes struggle
The firm showing in LLDPE was attributed to seasonal agricultural and packaging demand, combined with reduced import arrivals that eased supply pressure.
Shenhua Baotou Coal Chemical Co., China’s largest coal-based petrochemical producer, concluded its 19 September auction with mixed results, as linear low-density polyethylene (LLDPE) film sold out while polypropylene (PP) demand faltered.
|
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 |
950 |
518 |
6700 |
$834 |
6810-6870 |
$848-855 |
54.5% |
|
BOPP |
300 |
0 |
6750 |
$840 |
- |
- |
0.0% |
|
PPBC Inj |
200 |
0 |
6550 |
$815 |
- |
- |
0.0% |
|
LL Film |
300 |
300 |
7030 |
$875 |
7070 |
$880 |
100.0% |
|
HD Film |
100 |
0 |
7150 |
$890 |
- |
- |
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. |
|||||||
Auction platform: https://www.e-chnenergy.com
Auction time: Monday – Friday, 10 AM – 12 PM
Key points
Shenhua’s auction results underscored the widening split between the two products, with PP deals falling sharply compared to the previous session, while LLDPE film once again sold out.
The firm showing in LLDPE was attributed to seasonal agricultural and packaging demand, combined with reduced import arrivals that eased supply pressure. In contrast, PP demand faltered without the support of discounted yarn cargoes, leaving higher-priced material difficult to place.
“LLDPE enjoys some short-term support compared with PP, but overall, both markets are struggling to generate momentum for a meaningful rebound,” a local trader said.
With futures subdued and the Golden Week holiday approaching, sentiment across the polyolefin complex is likely to stay cautious.
Written: Kat Yun Yun
Edited: Aiman Haikal