CommoPlast

Shenhua Auction: Lower PP offers lift participation, but market hesitancy lingers

insight 09 Jul 2025

Trading sentiment on the Shenhua Auction Platform showed a visible uptick from the previous session, supported by a CNY 100/ton reduction in homo-PP auction prices and stronger performance on the Dalian Commodity Exchange.


Shenhua Baotou Coal Chemical Co., China’s largest coal-based polyolefins producer, concluded its auction on 09 July 2025 with moderate improvement in trading performance, driven by more competitive pricing and support from firmer futures.

Product

Auction Volume

Deal Volume

Auction Prices

Deal Prices

Deal %

CNY/ton

USD/ton

CNY/ton

USD/ton

Combined and reported by CommoPlast

PPH Yarn

1116

938

6600

$813

7020-7130

$865-879

84.1%

PPBC

432

66

6600

$813

6600-7100

$813-875

15.3%

LL Film

600

469

6950

$857

6970-7150

$859-881

78.2%

HD Film

100

0

7650

$943

-

-

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.

 

Auction platform: https://www.e-chnenergy.com  

Auction time: Monday – Friday, 10 AM – 12 PM 

Key takeaways:

Trading sentiment on the Shenhua Auction Platform showed a visible uptick from the previous session, supported by a CNY 100/ton reduction in homo-PP auction prices and stronger performance on the Dalian Commodity Exchange. The revised pricing strategy helped push PPH Yarn deal volumes up by 24% day-on-day.

However, despite the improved participation, Shenhua continued to fall short of full sell-through, reflecting a cautious buying stance in the face of an uncertain short-term market outlook.

“Even with discounts in place, most buyers remain reluctant to commit to large volumes. The market still lacks a clear upside driver,” a trader familiar with the matter noted.

 

 

Written: Kat Yun Yun 

Edited: Rochelle Nguyen

 

Country
China