CommoPlast Article

Shenhua Baotou Coal Chemical Co., China’s largest coal-based petrochemical producer, concluded its 03 July 2025 auction with noticeably stronger participation, as improved market sentiment and favourable arbitrage opportunities drew buyers back to the platform.

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	1780	1650	7000	$865	7030-7180	$869-887	92.7%
BOPP	100	0	7100	$878	-	-	0.0%
PPBC	324	92	7050	$871	7230-7240	$894-895	28.4%
LL Film	400	400	7000	$865	7000-7210	$8685-891	100.0%
HD Film	100	0	7700	$952	-	-	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.

Buoyed by the ongoing strength in Dalian Commodity Exchange futures, Chinese buyers exhibited renewed confidence, pushing Shenhua’s overall sell-through rate markedly higher compared to previous sessions. PPH yarn and LLDPE film stood out, achieving near-full and full clearance respectively, as arbitrage traders re-entered the market.

“The deal prices remain appealing for arbitrage, particularly against Dalian futures. But this advantage could evaporate quickly if the price spread narrows,” a market participant commented.

Despite the improved trading atmosphere, underlying demand remains fragile. Sources cautioned that the uptick in auction results may be driven more by short-term trading incentives than by fundamental recovery in downstream consumption.

Shenhua Auction: Sell-through rates rebounded on stronger futures