Shenhua Auction: PP deals outperform LLDPE Film as higher LLDPE prices face resistance
While PP auctions continued to see healthy movement, LLDPE film recorded a marked slowdown in deal momentum.
Shenhua Baotou Coal Chemical Co., China’s largest coal-based petrochemical producer, concluded its auction 06 January 2026, with the results for prime grades as follows:
|
Product |
Auction Volume |
Deal Volume |
Auction Prices |
Deal Prices |
Deal % |
||
|
CNY/ton |
USD/ton |
CNY/ton |
USD/ton |
||||
|
Combined and reported by CommoPlast |
|||||||
|
PPH Yarn |
1740 |
1730 |
5900 |
$748 |
5950-6260 |
$754-794 |
99.4% |
|
PPBC Inj |
100 |
199 |
6000 |
$761 |
6010 |
$762 |
100.0% |
|
LL Film |
800 |
500 |
6100 |
$774 |
6190-6330 |
$785-803 |
62.5% |
|
*Auction and Deal volumes are in tonnage *All USD equivalent prices only exclude the 13% value-added tax (VAT). They have not taken into account other costs that might incur in the selling process, i.e. import duty, customs clearances. |
|||||||
Auction platform: https://www.e-chnenergy.com
Auction time: Monday – Friday, 10 AM – 12 PM
The year’s second auction session underscored a growing divergence between polymer grades, as a range-bound performance in May 2026 futures on the Dalian Commodity Exchange (DCE) offered little incentive for aggressive bidding. While PP auctions continued to see healthy movement, LLDPE film recorded a marked slowdown in deal momentum.
The split performance was largely driven by the producer’s decision to raise LLDPE film auction prices by CNY 50/ton from the previous session. Market participants reported immediate resistance to the higher offers, with the deal rate slipping to 62.5%. Buyers widely viewed the increase as premature, citing the lack of a clear bullish signal from futures markets and the absence of a meaningful recovery in downstream demand.
By contrast, PP auction prices were kept broadly unchanged, supporting a near-complete sell-through. Homo-PP yarn achieved a 99.4% deal rate, while injection grades were fully cleared. Despite the strong uptake, bidding behaviour remained measured. Average deal levels for both PPH yarn and LLDPE film eased by CNY 20-40/ton from the previous day’s highs, indicating that while transactions continue, price discovery is edging lower.
Overall buying sentiment has turned more cautious compared with the post-holiday reopening on 5 January. “The market atmosphere is increasingly conservative,” a local participant said. “Most customers are sticking to hand-to-mouth procurement and are unwilling to accept higher offers without a clearer directional signal.”
This defensive stance is further reinforced by limited upstream support, as the earlier geopolitical risk premium in crude markets continues to fade, leaving sentiment vulnerable to further consolidation in the absence of fresh catalysts.
Written by: Kat Yun Yun
Edited by: Aiman Haikal