CommoPlast Article

Shenhua Baotou Coal Chemical Co., China’s largest coal-based petrochemical producer, concluded its auction on 06 May 2025, with the results for prime grades as follows:

Product	Auction Volume	Deal Volume	Auction Prices		Deal Prices		Deal %
Product	Auction Volume	Deal Volume	CNY/ton	USD/ton	CNY/ton	USD/ton	Deal %
*Combined and reported by CommoPlast*
PPH Yarn	1350	762	7020	$859	7100-7270	$869-890	56.4%
LL Film	500	5	7250	$887	7250	$887	1.0%
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.

The resumption of trading post-holiday brought no relief to Shenhua. The auction session was marked by sluggish participation, particularly for LLDPE, where deal volumes reached just 1% of the offered quantity. This stark contrast to PPH Yarn, which recorded a modest deal rate of 56.4%, highlights the uneven demand dynamics across product segments.

Market participants cited continued pressure from weak crude oil futures and a subdued Dalian Commodity Exchange as key deterrents to procurement activity. Downstream demand remains anaemic, with many converters yet to return to full operations amid a scarcity of end-product orders.

Industry sources noted that the bearish sentiment at Shenhua’s auction mirrors conditions in the broader domestic spot market. Without a decisive breakthrough in the US-China trade negotiations or substantial policy stimulus from Beijing, the outlook for a demand recovery remains bleak in the short term.

Shenhua Auction: No sign of demand recovery as market stays cautious