Shenhua Auction: PP sees stronger sales over LLDPE as futures market stabilizes

Shenhua Baotou Coal Chemical Co., China’s largest coal-based petrochemical producer, concluded its auction 17 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 

Divergent trends characterized Shenhua’s auction on the third trading session this week, with PP homo yarn registering comparatively stronger sales amid a slight stabilization in futures, while LLDPE film continued to struggle despite price concessions.

PP and LLDPE futures on the Dalian Commodity Exchange (DCE) initially tracked a weak trend during the morning session but staged a rebound toward the close. Notably, PP futures demonstrated a relatively stronger performance compared to LLDPE, a dynamic that was directly mirrored in the physical auction results. PP homo yarn achieved a healthy deal rate of 64.4%, significantly outperforming LLDPE film, which saw lackluster uptake at just 14.0%.

The resilience in PP demand was particularly notable given the absence of the lower-priced cargoes that were available in the previous session. Despite the lack of these cost-effective options, PP still managed to attract buying interest. Conversely, LLDPE film failed to gain traction even after the producer implemented a fresh discount of CNY 50/ton, underscoring the deep-seated resistance in the PE sector.

“The question now is whether PP will hit its cyclical bottom before PE, but overall sentiment remains weak for both grades, leading us to adopt a cautious approach for the time being,” a local market participant commented.

The session highlights the persistent uncertainty gripping the market. While the technical rebound in futures offered a reprieve for PP, the broader sentiment remains fragile, with converters largely adhering to a defensive procurement strategy.

Written by: Kat Yun Yun 

Edited by: Aiman Haikal