Shenhua Auction: Weak sentiment persists as PP and LLDPE deals remain diverged

Shenhua Baotou Coal Chemical Co., China’s largest coal-based petrochemical producer, concluded its auction 23 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 

At the Shenhua auction, deal outcomes mirrored the ongoing market divergence seen across the broader polyolefin complex. Homo-PP yarn transactions remained relatively resilient, securing a 74.1% deal rate. The uptake suggests that buyers are beginning to view PP as nearing a cyclical bottom, particularly as prices have already tested 2020 pandemic-era lows.

The Dalian Commodity Exchange (DCE) saw a mixed start to the session on Tuesday, with both PP and LLDPE futures staging a brief morning rebound before succumbing to renewed selling pressure. PP futures eventually extended their downward trajectory from the previous day, while LLDPE prices remained trapped within a subdued, range-bound territory.

In stark contrast to the PP segment, LLDPE film continues to face an uphill battle, with the deal rate plummeting to just 18.3%. Market participants indicated that the lack of a clear price floor in the futures market has effectively "frozen" LLDPE liquidity, as buyers fear further sharp corrections ahead of the long holiday period.

A local market player noted, “As we approach the end of the year and month, the availability of auction lots from producers is shrinking. However, the persistently weak price trend is keeping auction floor prices under immense pressure. With year-end requirements largely fulfilled and the festive season on the horizon, we expect the near-term outlook to remain firmly bearish.”

Written by: Kat Yun Yun 

Edited by: Aiman Haikal