Shenhua Auction: Rally in futures market lifted trading sentiment
Trading activity on Shenhua’s auction platform surged on the final trading day of the week, buoyed by a rally in crude oil prices and a sharp upturn in futures contracts on the Dalian Commodity Exchange.
Shenhua Baotou Coal Chemical Co., China’s largest coal-based petrochemical producer, concluded its auction on 13 June 2025 with a notable improvement in trading sentiment, underpinned by a surge in futures contracts and a bullish crude oil market.
|
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 |
2094 |
2084 |
6900 |
$850 |
6950-7240 |
$857-892 |
99.5% |
|
PPBC Inj |
100 |
30 |
7250 |
$894 |
7250 |
$894 |
30.0% |
|
LL Film |
300 |
300 |
7050 |
$869 |
7140-7240 |
$880-892 |
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. |
|||||||
Auction platform: https://www.e-chnenergy.com
Auction time: Monday – Friday, 10 AM – 12 PM
Key takeaways:
Trading activity on Shenhua’s auction platform surged on the final trading day of the week, buoyed by a rally in crude oil prices and a sharp upturn in futures contracts on the Dalian Commodity Exchange. Despite an uptick in auction volumes—particularly for homo-PP—uptake rates remained robust, signalling improved market confidence.
The escalation of conflicts in the Middle East triggered a rally of nearly 13% in global crude oil benchmarks during early Friday trading, prompting several major Chinese suppliers to pull back offers amid rising feedstock volatility.
A domestic trader remarked, “We are not seeing any signs of panic buying yet, but there’s a noticeable sense of optimism among traders and producers. That said, we prefer to remain cautious given the current uncertainties.”
Written: Kat Yun Yun
Edited: Rochelle Nguyen