Shenhua Auction: Futures extend losses, further eroding PP and LLDPE buying interest

Shenhua Baotou Coal Chemical Co., China’s largest coal-based petrochemical producer, concluded its auction 08 December 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 opened the week on a notably softer footing, underscoring weaker buying interest across PP and particularly LLDPE. Futures for the January 2026 PP and LLDPE contracts on the Dalian Commodity Exchange extended last week’s decline at the open, moving in a narrow and consistently lower range through the morning session. The pressure from futures continued to weigh on sentiment and kept physical market activity limited to small, needs-based purchases.

LLDPE film, offered at about CNY 100/ton below last Friday’s auction level, drew only minimal engagement, with just 7.3% of volumes transacted — the lowest clearance rate yet this month. PP performance was more mixed: injection-grade PP achieved full clearance on steady, needs-driven demand, while block copolymer and yarn grades met firmer resistance as downstream buyers remained cautious.

According to market participants, the absence of the sharply discounted PP yarn parcels seen last Friday contributed to the weaker turnout, reinforcing expectations of further price easing. “With futures continuing to hit new lows, buyers lack confidence in any near-term price floor,” a local trader said.

Overall, today’s session highlights persistent pessimism and defensive buying behaviour. Unless futures stabilise or downstream orders show meaningful improvement, demand for both PP and LLDPE is expected to remain subdued in the near term.

Written by: Kat Yun Yun 

Edited by: Aiman Haikal