CommoPlast Article

Shenhua Baotou Coal Chemical Co.—China’s leading coal-based polyolefin producer—concluded its 25 June 2025 online auction with mixed results, reflecting persistent caution in the broader market despite some improvement in sell-through rates.

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	1066	817	7000	$864	7010-7190	$865-887	76.6%
PPBC Inj	300	100	6980	$862	7250-7260	$895-896	33.3%
HD Film	250	250	7450	$920	7570-7740	$934-955	100.0%
LL Film	-	-	-	-	-	-	-
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.

Despite weakening trends in key polyolefin futures contracts on the Dalian Commodity Exchange, Shenhua succeeded in improving deal volumes by lowering auction starting prices across major product lines. A notably reduced allocation ahead of month-end also supported the improved sell-through ratios.

Market participants noted that buying interest was largely price driven as Shenhua’s coal-based homo-PP was priced CNY 60–140/ton below equivalent materials in the domestic spot market, attracting need-based procurement from converters and traders.

“The market has largely priced in the de-escalation of Middle East tensions, and current procurement is guided by cost competitiveness,” said one trader. “However, attention is now shifting back to the ongoing US-China trade strain. With American buyers reducing forward purchases, the demand outlook for raw materials is turning increasingly bearish.”

Shenhua Auction: Lower prices stimulate modest need-based buying