Shenhua Auction: Strong sell-through despite price hikes amid renewed market optimism

insight 14 May 2025

Notably, these results came despite moderate upward price adjustments for both homo-PP and LLDPE compared to the preceding session—suggesting that the market is gaining confidence in a broader recovery.

Shenhua Baotou Coal Chemical Co., China’s largest coal-based petrochemical producer, concluded its auction on 14 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	1556	1556	7100	$870	7150-7400	$876-907	100.0%
PPBC Inj	300	193	7450	$913	7450-7510	$913-921	64.3%
LL Film	470	455	7180	$880	7280-7570	$892-928	96.8%
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

Key takeaways:

Shenhua’s auction once again reflected a firm tone, as full allocation for PPH yarn and near-complete clearance for LLDPE film pointed to improved buying sentiment. Notably, these results came despite moderate upward price adjustments for both homo-PP and LLDPE compared to the preceding session—suggesting that the market is gaining confidence in a broader recovery.

The recent easing in US-China trade tensions appears to have injected fresh optimism into the domestic polyolefin market. Sentiment is shifting toward expectations that prices may soon revert to pre-trade war levels, especially if current momentum continues.

“At the current pace, the local market is expected to firm up further across the trading platform,” one trader observed, reflecting the growing bullishness among market participants.

Written: Kat Yun Yun

Edited: Rochelle Nguyen

Country
China