Shenhua Auction: Trading sentiment weakened as buyers resisted higher prices
The producer’s move to increase the auction price for homo-PP yarn by CNY 100/ton compared to the previous session met with notable resistance from market participants, particularly against a backdrop of declining futures on the Dalian Commodity Exchange.
Shenhua Baotou Coal Chemical Co., China’s largest coal-based petrochemical producer, concluded its auction on 08 May 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 |
1530 |
1113 |
7050 |
$863 |
7100-7340 |
$869-898 |
72.7% |
|
PPBC Inj |
383 |
0 |
7100 |
$869 |
- |
- |
0.0% |
|
LL Film |
570 |
362 |
7150 |
$875 |
7180-7450 |
$879-912 |
63.5% |
|
*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:
As widely anticipated, buying enthusiasm on the Shenhua Auction Platform weakened considerably. The producer’s move to increase the auction price for homo-PP yarn by CNY 100/ton compared to the previous session met with notable resistance from market participants, particularly against a backdrop of declining futures on the Dalian Commodity Exchange.
This shift led to a significant reduction in trading volumes across the board. Sell-through rates for both PP and LLDPE dropped sharply by approximately 26–27% compared to the previous auction, underscoring both the market’s fragility and the growing price sensitivity among buyers.
Written: Kat Yun Yun
Edited: Rochelle Nguyen