Shenhua Auction: Mild rebound in PP futures sparks limited need-based buying; LLDPE demand remains weak

Shenhua Baotou Coal Chemical Co., China’s largest coal-based petrochemical producer, concluded its auction 10 November 2025, with the results for prime grades as follows:

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

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

Trading sentiment at Shenhua’s latest session was influenced by a modest rebound in PP futures on the Dalian Commodity Exchange, which briefly bolstered confidence among converters. Futures gains were partly supported by fresh macroeconomic data suggesting signs of easing domestic deflationary pressure.

PP contracts outperformed LLDPE, encouraging some need-based replenishment, though overall market activity remained measured. At the auction, homo-PP yarn attracted steady participation, with more than half of the available cargo cleared. 

Buyers cited the short-lived futures recovery as the main driver behind transactions, while the absence of last week’s discounted lots limited aggressive purchasing.

In contrast, LLDPE film saw sharply lower deal volumes, with less than 8% of auctioned cargo transacted despite low auction volumes. This reflected continued caution among converters amid ample spot supply and weak downstream demand. 

A market participant noted, “PP offers were slightly higher this morning, yet transactions remained largely need-based. LLDPE demand continues to be weak, and there’s little urgency for larger volumes as buyers monitor both futures and feedstock trends.”

Overall, auction activity remained cautious, with PP marginally outperforming LLDPE in terms of uptake. Market participants are expected to maintain a conservative stance heading into next week, awaiting firmer signals from futures or fresh price incentives before committing to larger purchases.

Written: Kat Yun Yun 

Edited: Aiman Haikal