Shenhua Auction: Trading sentiment holds firm amid easing trade tensions

Shenhua Baotou Coal Chemical Co., China’s largest coal-based petrochemical producer, concluded its auction on 06 June 2025, with the results for prime grades as follows:

Auction platform: https://www.e-chnenergy.com  

Auction time: Monday – Friday, 10 AM – 12 PM 

Key takeaways:

Despite persistent softness in PP and LLDPE futures on the Dalian Commodity Exchange, trading sentiment during Shenhua's auction remained resilient. High deal-to-auction ratios, particularly for PPH yarn and LLDPE film, signal sustained downstream demand and limited supply-side pressure.

One of the main contributors to this upbeat session was the absence of competing auctions on other online platforms, which funnelled more buyers towards Shenhua’s offering. Additionally, a shift in broader sentiment following geopolitical developments appears to have buoyed market confidence.

Market participants pointed to renewed US-China diplomatic engagement as a key driver. News of the two nations agreeing to resume high-level trade discussions—following a phone call between top officials late Wednesday—has prompted cautious optimism. Although concrete outcomes remain uncertain, any sign of de-escalation in trade tensions tends to support commodity markets, especially in a climate of volatile fundamentals.

“This is a good sign for the market. However, we need to closely monitor the likelihood of any price hikes in the near term,” a trader familiar with the matter remarked.

Written: Kat Yun Yun 

Edited: Rochelle Nguyen