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Shenhua Auction: Cautious Sentiment Prevails as Shenhua Auction Activity SlowsWith sentiment still under strain and futures prices offering limited directional cues, industry players remain focused on potential demand signals later in the month. |
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Shenhua Baotou Coal Chemical Co., China’s largest coal-based petrochemical producer, concluded its auction 04 August 2025, with the results for prime grades as follows:
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Product |
Auction Volume |
Deal Volume |
Auction Prices |
Deal Prices |
Deal % |
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CNY/ton |
USD/ton |
CNY/ton |
USD/ton |
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Combined and reported by CommoPlast |
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PPH Yarn |
1332 |
388 |
6950 |
$857 |
6950-7050 |
$857-869 |
29.1% |
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PPBC |
150 |
100 |
6600 |
$813 |
6600 |
$813 |
66.7% |
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LL Film |
450 |
50 |
7000 |
$863 |
7160 |
$882 |
11.1% |
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*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. |
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Auction platform: https://www.e-chnenergy.com
Auction time: Monday – Friday, 10 AM – 12 PM
Key takeaways:
Polypropylene (PP) and linear low-density polyethylene (LLDPE) futures on the Dalian Commodity Exchange (DCE) continued their downward trend in Monday morning trade, casting a bearish shadow over Shenhua’s latest auction performance.
Deal volumes for both PP homo yarn and LLDPE film were notably sluggish, with muted transactions reflecting persistent caution and a lacklustre demand outlook in the domestic market.
“Entering August, it seems the market still needs time to stabilise. Buying interest remains weak and confidence is low,” said a local trader. “Recent price corrections—following earlier speculative support linked to coal market movements and anti-involution policies—have not been sufficient to sustain momentum. Feedback from customers this morning has been very poor, and we expect selling conditions to stay difficult in the near term.”
Market participants pointed to the subdued auction outcome as indicative of a broader wait-and-see stance, with buyers hesitant to commit amid expectations of further downside or a slow recovery in immediate consumption.
With sentiment still under strain and futures prices offering limited directional cues, industry players remain focused on potential demand signals later in the month. However, most continue to approach the near-term outlook with caution, wary of further volatility and macroeconomic headwinds.
Written by: Kat Yun Yun
Edited by: Rochelle Nguyen
Country
China
