CommoPlast Article

Shenhua Auction: Sentiment cools ahead of weekend, but supply concerns keep market outlook firm

Shenhua Baotou Coal Chemical Co., China’s largest coal-based petrochemical producer, concluded its auction on 19 June 2025 with mixed results across key prime grades. Despite softer sentiment heading into the weekend, market fundamentals suggest continued support in the near term.

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	1680	1293	7050	$869	7120-7320	$878-902	77.0%
BOPP	300	300	7200	$887	7200	$887	100.0%
PPBC Inj	164	100	6800	$838	7300	$900	61.0%
LL Film	50	50	7350	$906	7390	$911	100.0%
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.

Shenhua wrapped up its final trading session of the week on a relatively firm note, though the sell-through rate for homo-PP slipped to 77% following a modest CNY 40/ton increase in the auction starting price. The price hike met with muted response, signalling a brief cooling in buying appetite ahead of the weekend.

Still, traders and market participants suggest the pullback in activity may be short-lived. A persistent uptrend in international crude oil benchmarks, coupled with firmer futures on the Dalian Commodity Exchange, is expected to lend underlying support to spot sentiment.

Moreover, the ongoing geopolitical volatility in the Middle East continues to fuel supply-side concerns, particularly for China’s import-dependent sectors. These factors may limit downside potential and keep sellers in a strong bargaining position going into next week.