Shenhua Auction: Discounts stimulate deals, market bottom still uncertain

Shenhua Baotou Coal Chemical Co., China’s largest coal-based petrochemical producer, concluded its auction 19 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 

Shenhua’s latest auction recorded strong buying interest for PP and LLDPE, driven by extended discounts. Homo-PP yarn saw near-full clearance, with 95.8% of offered cargo sold, while LLDPE film achieved complete clearance. Market participants attributed the activity to the ongoing CNY 50/ton concession on homo-PP yarn, which encouraged converters to secure volumes for immediate requirements.

Despite robust participation, deal prices for homo-PP yarn eased by CNY 30–40/ton from the previous session, reflecting persistent soft sentiment. LLDPE film saw a reduction in auction volumes as the producer allocated more cargoes to offline negotiations with converters, limiting the quantity available for competitive bidding.

A local trader noted, “There are still need-based purchases when discounts are available, but it’s difficult to say if the market has truly bottomed. Buyers remain cautious, and broader price direction will hinge on futures and spot market movements in the coming sessions.”

Overall, while discounts continue to support short-term transactions, underlying market softness remains. Participants are closely monitoring whether PP and LLDPE prices have reached a cyclical low.

Written by: Kat Yun Yun 

Edited by: Aiman Haikal