Shenhua Auction: Market extended losses mmid deepening pessimism
Despite Shenhua’s deliberate move to position auction prices below the psychological CNY 7,000/ton mark—an effort to entice buyers—the response was notably muted.
Shenhua Baotou Coal Chemical Co., China’s largest coal-based petrochemical producer, concluded its auction on 27 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 |
1427 |
681 |
6950 |
$855 |
7050-7150 |
$868-880 |
48.6% |
|
PPBC Inj |
547 |
64 |
6790 |
$836 |
6790-6900 |
$836-849 |
11.7% |
|
LL Film |
470 |
0 |
6920 |
$852 |
- |
- |
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 remained subdued, reflecting entrenched bearishness across the domestic polyolefins market. Despite Shenhua’s deliberate move to position auction prices below the psychological CNY 7,000/ton mark—an effort to entice buyers—the response was notably muted.
Market participants attributed the underwhelming performance to widespread expectations of further price declines in the near term. The anticipation of a continued downtrend has kept procurement activity on hold, as converters adopt a wait-and-see stance.
The lack of appetite was most striking in the LLDPE sector. Not a single deal was recorded for LL film grade, despite a reduced auction quantity—underscoring the depth of the current demand-side weakness.
Written: Kat Yun Yun
Edited: Rochelle Nguyen