CommoPlast Article

Shenhua Baotou Coal Chemical Co., China’s largest coal-based petrochemical producer, wrapped up its auction on 24 June 2025 with a noticeable drop in buying interest, echoing broader weakness across the domestic polyolefins market.

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	2220	673	7050	$869	7050-7300	$869-900	30.3%
PPBC Inj	200	0	7280	$897	-	-	0.0%
HD Film	250	177	7500	$924	7520-7730	$927-953	70.8%
LL Film	100	0	7340	$905	-	-	0.0%
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.

Trading sentiment on Shenhua’s auction platform weakened significantly on Tuesday, mirroring the bearish tone seen in the broader domestic market. A sharp drop in crude oil futures and continued losses on the Dalian Commodity Exchange further dampened buying confidence, prompting many participants to retreat to the sidelines.

The muted performance was particularly evident in LLDPE, which failed to register any successful deals. PPBC injection also saw no takers. Although coal-based homo-PP yarn and HDPE film managed to attract selective interest, deal volumes remained modest compared to typical levels.

A Chinese trader commented, “The situation in the Middle East remains highly fluid. Everyone is watching closely to see whether the ceasefire between Iran and Israel holds.”

While spot prices have yet to undergo major downward revisions, the abrupt shift in sentiment has introduced fresh volatility into the near-term outlook. Most converters are expected to stay cautious, reassessing risks and price direction amid geopolitical uncertainties and sliding energy values.

Shenhua Auction: Sentiment cools sharply as Middle East tensions ease