Shenhua Auction: Softer sentiment ahead of holiday, need-based buying persists

Shenhua Baotou Coal Chemical Co., China’s largest coal-based petrochemical producer, concluded its 29 September auction with mixed outcomes. PP yarn registered weaker clearances at lower prices, while LLDPE film attracted firmer buying interest, keeping values above CNY7,000/ton.

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

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

Key takeaways

Shenhua’s auction saw homo-PP yarn cleared just over 60% of offered volumes, with concluded deals down by CNY60–160/ton from the previous session. Block copolymer failed to attract any bids, reflecting persistent weakness in secondary PP grades.

By contrast, LLDPE film achieved two-thirds sell-through after prices rose by CNY200/ton. Transactions above the CNY7,000/ton threshold underscored steady demand from packaging and agricultural sectors despite subdued sentiment.

On the Dalian Commodity Exchange, PP and LLDPE futures opened weaker before staging a modest rebound later in the morning. The limited recovery did little to shift the cautious tone, with downstream players continuing to buy only on a need basis.

The results reinforced a muted outlook across the polyolefin complex ahead of the Golden Week holiday, with trading expected to remain quiet until post-holiday demand becomes clearer

Written: Kat Yun Yun 

Edited: Aiman Haikal