Shenhua Auction: Strong sell-through rates driven by immediate buying needs
Despite a muted performance in the morning session on the Dalian Commodity Exchange, Shenhua maintained robust sell-through rates, underscoring the resilience of immediate demand-driven buying.
Shenhua Baotou Coal Chemical Co., China’s largest coal-based petrochemical producer, concluded its auction on 05 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 |
1090 |
990 |
6950 |
$857 |
6990-7090 |
$862-874 |
90.8% |
|
PPBC Inj |
216 |
20 |
6820 |
$841 |
7250 |
$894 |
9.3% |
|
LL Film |
300 |
300 |
7010 |
$864 |
7020-7050 |
$865-869 |
100.0% |
|
*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. |
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Auction platform: https://www.e-chnenergy.com
Auction time: Monday – Friday, 10 AM – 12 PM
Key takeaways:
Despite a muted performance in the morning session on the Dalian Commodity Exchange, Shenhua maintained robust sell-through rates, underscoring the resilience of immediate demand-driven buying.
According to market sources, firmer spot prices across the board encouraged buyers to seek more competitively priced cargoes via the auction channel. “Due to firmer spot markets, many buyers turned to the auction platform for more attractive cargoes. Fears of potential disruption in ethane supply due to the US’s latest trade manoeuvres also fuelled restocking interest,” a trader noted.
However, there remains caution in the market. Analysts warn that if futures contracts on Dalian resume a downward trajectory, the current buying momentum could prove short-lived. The auction’s performance, while positive, appears more reactive than reflective of a broader market recovery.
Written: Kat Yun Yun
Edited: Rochelle Nguyen