Shenhua Auction: Buyer resistance mounts amid price pressures
Buyer resistance emerged clearly in response to higher offer levels, and some market participants were reportedly diverted by the return of the Shandong Yulong Auction session
Shenhua Baotou Coal Chemical Co., China’s largest coal-based petrochemical producer, concluded its auction on 11 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 |
1536 |
1124 |
6950 |
$855 |
6970-7220 |
$858-889 |
73.2% |
|
PPBC Inj |
200 |
109 |
6700 |
$825 |
6710-7250 |
$826-892 |
54.5% |
|
LL Film |
400 |
200 |
7050 |
$868 |
7090 |
$873 |
50.0% |
|
*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:
Trading sentiment on the Shenhua Auction Platform softened notably compared to the previous session. Buyer resistance emerged clearly in response to higher offer levels, and some market participants were reportedly diverted by the return of the Shandong Yulong Auction session, which provided an alternative source of supply outside the coal-based segment.
Despite the initially optimistic tone following positive developments in the US-China trade talks, Shenhua’s latest auction outcome underscores the fragility of market confidence. Deal volumes declined across all key product grades, reflecting the hyper-sensitivity of Chinese converters to even marginal price adjustments.
In a noteworthy shift, the lower-end deal price of CNY 7,020/ton for LLDPE film—recorded in the previous session—was not repeated this round. This absence appeared to weigh heavily on sentiment and contributed to the muted buying interest.
Written: Kat Yun Yun
Edited: Rochelle Nguyen