Shenhua Auction: Higher PP prices meet resistance, LLDPE maintains strength

Shenhua Baotou Coal Chemical Co., China’s largest coal-based petrochemical producer, concluded its auction on 24 October 2025 with mixed results, as firmer prices for PP Homo yarn faced resistance while LLDPE film continued to record near-full sell-through.

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

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

Key takeaways

Trading sentiment at Shenhua’s auction was mixed on Friday as PP and LLDPE futures on the Dalian Commodity Exchange opened lower before recovering toward mid-day.

Deals for LLDPE film remained robust, supported by stable auction prices and steady downstream demand, with nearly all volumes sold. In contrast, Homo-PP yarn faced headwinds after auction prices were raised by around CNY 30/ton from the previous session, prompting slower buying activity.

Market participants attributed the softer PP response to lingering caution among converters, despite firmer crude, coal, and polyolefin futures in recent days. “Although the price increase was modest, resistance suggests buyers remain hesitant,” a trader said. “Still, with futures rebounding over the past two sessions, some need-based replenishment has re-emerged.”

The day’s results suggest a cautiously optimistic undertone heading into the final week of October. However, the market’s near-term direction will depend on whether the rebound in upstream benchmarks can translate into sustained improvement in downstream demand and sentiment.

Written: Kat Yun Yun 

Edited: Aiman Haikal