Shenhua Auction: Futures strength lifts demand, LLDPE clears in full
Shenhua’s auction benefited from firmer sentiment in the futures market, with PP and LLDPE contracts on the Dalian Commodity Exchange extending gains during the morning session.
Shenhua Baotou Coal Chemical Co., China’s largest coal-based petrochemical producer, concluded its 26 September auction with stronger results, as firmer futures encouraged converters to secure essential volumes across key grades.
|
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 |
1039 |
848 |
6650 |
$825 |
6660-6820 |
$825-846 |
81.6% |
|
PPBC Inj |
400 |
398 |
6310 |
$783 |
6310-6350 |
$783-788 |
99.5% |
|
LL Film |
100 |
100 |
6880 |
$854 |
6980 |
$866 |
100.0% |
|
*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 takeaway:
Shenhua’s auction benefited from firmer sentiment in the futures market, with PP and LLDPE contracts on the Dalian Commodity Exchange extending gains during the morning session. This supported improved sell-through rates, particularly in block copolymer and homo-PP yarn, both of which achieved higher clearances compared with recent sessions.
LLDPE film once again cleared in full despite auction prices rising by CNY30/ton from the previous day, underscoring steady demand from packaging and agricultural sectors. Market participants noted that while minor discounts were offered in the spot market to stimulate interest, restricted auction volumes ensured firm uptake.
The results reinforced a cautious but stabilised tone across the polyolefin complex ahead of the Golden Week holiday. “We expect prices to hover in a narrow range in the coming days. For now, sentiment remains cautious, and optimism for the post-holiday outlook is limited,” a trader commented.
Written: Kat Yun Yun
Edited: Aiman Haikal