Shenhua Auction: March concluded on a stronger note for Shenhua despite futures market weakness
In a bid to stimulate buying interest, the coal-based producer applied discounts of CNY 40/ton on LLDPE transactions and CNY 70/ton on homo-PP, with cargoes priced at the higher end of the range seeing the greatest price adjustments.
Shenhua Baotou Coal Chemical Co., China’s largest coal-based petrochemical producer, concluded its auction on 31 March 2025, with the results for prime grades as follows:
|
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 |
372.55 |
369.55 |
7250 |
$885 |
7250-7270 |
$885-887 |
99.2% |
|
LL Film |
250 |
189 |
7750 |
$946 |
7750-7800 |
$946-952 |
75.6% |
|
*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:
Shenhua concluded its final auction session of March on a positive note, as a significantly reduced auction volume, combined with a more flexible pricing strategy, helped offset pressure from a sluggish futures market.
In a bid to stimulate buying interest, the coal-based producer applied discounts of CNY 40/ton on LLDPE transactions and CNY 70/ton on homo-PP, with cargoes priced at the higher end of the range seeing the greatest price adjustments.
Despite these efforts, demand for LLDPE remained relatively subdued compared to homo-PP, reinforcing the prevailing trading pattern observed in the Chinese market throughout March.
Written by: Kat Yun Yun
Edited by: Rochelle Nguyen