Shenhua Auction: Demand slipped even as prices tested new lows

Shenhua Baotou Coal Chemical Co., China’s largest coal-based petrochemical producer, concluded its auction 12 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 

Purchasing activity at Shenhua’s PP and LLDPE auction fell sharply on Friday, as the May 2026 futures contract on the Dalian Commodity Exchange — now the most active contract — extended its losses to fresh lows, further eroding sentiment ahead of the weekend.

Despite another round of auction discounts of CNY 40–100/ton from the previous day, volumes for both PP and LLDPE dropped noticeably from Thursday. The continued decline suggested that buyers remained cautious, even as homo-PP yarn prices at CNY 5850/ton slipped below the pandemic-era low recorded in March 2020.

Traders noted that even at these levels, homo-PP yarn’s deal level was weaker than the previous session, which reflects the ongoing uncertainty over whether the market has found a floor. Buyers were largely sticking to needs-based procurement while awaiting clearer signals on price direction.

A local market participant said most customers had already completed their weekly purchases and preferred to wait for further indications next week. “With prices continuing to fall and no clear sign of a bottom, buyers are likely to remain on the sidelines. The near-term outlook stays weak,” the participant said.

Written by: Kat Yun Yun

Edited by: Farid Muzaffar