Shenhua Auction: LLDPE holds ground as PP struggles under weak sentiment
Shenhua’s auction highlighted LLDPE’s relative resilience, with film grades achieving over 90% sell-through from offered volumes, while homo-PP yarn saw deals fall back despite accounting for the largest lot
Shenhua Baotou Coal Chemical Co., China’s largest coal-based petrochemical producer, concluded its 23 September auction with results underscoring the widening split between PP and LLDPE.
|
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 |
1566 |
985 |
6650 |
$828 |
6650-6810 |
$828-848 |
62.9% |
|
BOPP |
300 |
0 |
6700 |
$834 |
- |
- |
0.0% |
|
PPBC Inj |
400 |
0 |
6500 |
$809 |
- |
- |
0.0% |
|
LL Film |
450 |
409 |
6850 |
$853 |
6890-7080 |
$858-881 |
90.9% |
|
HD Film |
100 |
0 |
7100 |
$884 |
- |
- |
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
Shenhua’s auction highlighted LLDPE’s relative resilience, with film grades achieving over 90% sell-through from offered volumes, while homo-PP yarn saw deals fall back despite accounting for the largest lot. Other PP variants, alongside HDPE film, attracted no trades.
The results came against a backdrop of weakening sentiment, as PP and LLDPE futures on the Dalian Commodity Exchange extended losses during the morning session. Auction prices were trimmed by CNY50/ton compared with the previous day, yet buyers remained reluctant to commit beyond immediate requirements.
Market sources noted that the performance mirrored spot conditions: LLDPE continues to find support from steady agricultural and packaging demand, while PP faces persistent supply-side pressure and muted downstream consumption.
“Deals for LLDPE are not particularly strong, but they are still better than PP,” one trader remarked, pointing to widespread caution as most buyers avoid stock-building amid expectations that prices have not yet reached a cyclical bottom.
Written by: Kat Yun Yun
Edited by: Aiman Haikal