Shenhua Auction: Stronger buying as prices hover CNY 50 above COVID-era floor

Shenhua Baotou Coal Chemical Co., China’s largest coal-based petrochemical producer, concluded its auction 11 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 

PP and LLDPE futures for the January 2026 contract the Dalian Commodity Exchange opened firmer on Thursday before easing later in the morning, offering a brief lift to sentiment ahead of Shenhua’s auction. The technical rebound helped spur the strongest transaction activity of the week for both PP and LLDPE.

Homo-PP yarn attracted particular interest, with the auction price at CNY 5,950/ton — just CNY 50/ton above the historic COVID-era low of CNY 5,900/ton recorded in late March 2020. The proximity to this multi-year floor encouraged more decisive buying, as participants looked to replenish stocks at rare price levels.

Demand extended across product grades. PPBC cleared in full, while LLDPE film also achieved 100% uptake, reflecting broad, needs-based procurement supported by the attractive pricing environment.

Even so, market participants warned that the futures rebound may prove temporary, noting that sustained improvement in buying interest will depend on firmer downstream orders and greater stability in futures. Traders said the session underscored how defensive purchasing at near-historic lows can quickly accelerate activity, even in a generally cautious market.

Overall, Shenhua’s 11 December auction highlighted persistent price sensitivity among buyers, with near-record discounts drawing stronger yet still selective participation. Futures performance and downstream demand signals remain the key factors shaping procurement in the near term.

Written by: Kat Yun Yun 

Edited by: Aiman Haikal