Shenhua Auction: Softer prices, improving market outlook boosted auction results
The auction saw robust buying interest across key product lines, driven by improved sentiment following the temporary easing of US-China trade tensions.
Shenhua Baotou Coal Chemical Co., China’s largest coal-based petrochemical producer, concluded its auction on 13 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 |
1710 |
1705 |
7050 |
$868 |
7100-7330 |
$874-902 |
99.7% |
|
PPBC Inj |
600 |
379 |
6800 |
$837 |
6800-7500 |
$837-923 |
63.2% |
|
LL Film |
595.45 |
565.15 |
7080 |
$871 |
7080-7590 |
$871-9934 |
94.9% |
|
*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:
The auction saw robust buying interest across key product lines, driven by improved sentiment following the temporary easing of US-China trade tensions. The strong sell-through rate reflects renewed optimism in the downstream market.
A key contributor to the positive outcome was Shenhua’s tactical move to reduce auction prices marginally, making coal-based materials more competitively priced than domestic spot cargoes. This pricing advantage spurred procurement activity, especially for PPH Yarn and LLDPE Film, both of which recorded deal rates exceeding 94%.
“Given the current bullish sentiment, we anticipate continued firm buying interest in the near term,” commented a market participant. “That said, most buyers remain cautious, adhering to hand-to-mouth purchasing strategies due to lingering macroeconomic uncertainties.
Written: Kat Yun Yun
Edited: Rochelle Nguyen