Shenhua Auction: Stronger homo-PP yarn deals supported by methanol and futures market

Shenhua Baotou Coal Chemical Co., China’s largest coal-based polyolefins producer, completed its 24 November 2025 auction with divergent performance across PP and LLDPE grades.

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

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

Shenhua’s latest auction delivered mixed results across homo-PP yarn and LLDPE, as the absence of lower-priced cargoes prompted stronger resistance from buyers. Meanwhile, PP and LLDPE futures on the Dalian Commodity Exchange posted a mild rebound during the morning session, offering some support to sentiment.

Homo-PP yarn cleared 93.8% of offered cargo, supported by mild rebounds in PP futures and short-term supply disruptions at Iranian methanol plants, which provided additional cost support. Buyers were primarily focused on immediate, need-based purchases, reflecting selective risk appetite amid the absence of discounted cargoes. 

LLDPE film attracted limited demand, with only 30 tons concluded, as buying interest eased following the end of the agricultural film production season in northern China. Meanwhile, PPBC registered no concluded deals amid firm offer levels and selective purchasing from converters.

Participants noted that the latest auction reflects diverging downstream dynamics and evolving cost conditions. However, they cautioned that further observation is needed to determine whether PP prices are approaching a cyclical bottom, with near-term direction likely shaped by futures performance, demand strength, and feedstock developments.

Written by: Kat Yun Yun 

Edited by: Aiman Haikal