Shenhua Auction: Steep price cuts yielded mixed results
Despite subdued sentiment in the Dalian Commodity Exchange post-holiday, Shenhua’s auction concluded on a relatively strong note, especially for homo-PP, bolstered by the producer’s assertive pricing strategy.
Shenhua Baotou Coal Chemical Co., China’s largest coal-based petrochemical producer, concluded its auction on 03 June 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 |
1316 |
1155 |
6850 |
$842 |
6890-7130 |
$847-876 |
87.8% |
|
PPBC Inj |
212 |
74 |
6800 |
$836 |
6800-7250 |
$836-891 |
35.0% |
|
LL Film |
400 |
99 |
6850 |
$842 |
6880-6890 |
$846-847 |
24.8% |
|
*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:
Despite subdued sentiment in the Dalian Commodity Exchange post-holiday, Shenhua’s auction concluded on a relatively strong note, especially for homo-PP, bolstered by the producer’s assertive pricing strategy.
Auction data showed that homo-PP prices were cut by CNY 210/ton ($30/ton) compared to pre-holiday levels, while LLDPE film was lowered by CNY 180/ton. These reductions were instrumental in facilitating transactions, particularly in the PP segment.
A market source commented, “There is clearly more interest in homo-PP yarn at these discounted levels, but confidence in LLDPE remains weak. The market still sees limited signs of support for any price rebound, especially as we now enter the traditional low-demand season.”
Written: Kat Yun Yun
Edited: Rochelle Nguyen