Shenhua Auction: Need-based buying persists while prices continue to soften
Trading sentiment at Shenhua’s latest auction remained subdued, mirroring the soft, range-bound movement in PP and LLDPE futures on the Dalian Commodity Exchange.
Shenhua Baotou Coal Chemical Co., China’s largest coal-based petrochemical producer, concluded its auction on 29 October 2025 with mixed results, as demand for PP Homo grades held steady while LLDPE film weakened further.
|
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 |
1400 |
1006 |
6430 |
$801 |
6470-6540 |
$806-815 |
71.9% |
|
PPH Inj |
32.8 |
32.8 |
6200 |
$773 |
6250 |
$779 |
100.0% |
|
LL Film |
600 |
497 |
6700 |
$835 |
6750-6900 |
$841-860 |
82.8% |
|
*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 takeaways
Trading sentiment at Shenhua’s latest auction remained subdued, mirroring the soft, range-bound movement in PP and LLDPE futures on the Dalian Commodity Exchange. LLDPE futures underperformed slightly against PP, extending the cautious tone that has defined the week’s trading.
Homo-PP yarn recorded moderate deal volumes, supported by marginally lower offers that made prices more acceptable to buyers. “The deals for homo-PP yarn weren’t particularly strong,” one trader commented. “But with prices trimmed by about CNY20/ton from the previous day, buyers found the offers more reasonable.”
Deal prices for both PP and LLDPE fell by CNY10–90/ton from the previous session, underscoring the fragile sentiment as transactions remain driven largely by short-term, need-based replenishment. Despite weaker buying interest, stable participation indicates that sellers are managing expectations amid limited downstream demand and steady cost inputs.
As the month draws to a close, market participants are expected to remain cautious ahead of November offers. With crude benchmarks holding steady and demand yet to show signs of recovery, Shenhua’s upcoming sessions are likely to test the market’s price tolerance further, while broader sentiment will hinge on movements in upstream and futures markets.
Written by: Kat Yun Yun
Edited by: Aiman Haikal