Shenhua Auction: Middle East tensions lend support to off-take rates

Shenhua Baotou Coal Chemical Co., China’s largest coal-based petrochemical producer, concluded its auction session on 16 June 2025 with solid results across key prime grades. Full auction outcomes are detailed below:

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

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

Key takeaways:

Shenhua kicked off the week’s first trading session on a firm footing, buoyed by sustained strength in key futures contracts on the Dalian Commodity Exchange. The modest increase in auction prices—CNY 50/ton for homo-PP and CNY 100/ton for LLDPE—was largely absorbed by domestic buyers, reflected in robust deal completion rates, particularly for film-grade LLDPE.

Despite the generally upbeat auction outcome, sentiment in the broader market remained cautious. Ongoing geopolitical tensions in the Middle East continue to cast a shadow over near-term demand visibility. While some participants anticipate further upside, many are refraining from aggressive procurement amid concerns that the current rally could falter should the regional conflict de-escalate.

A trader commented, “That said, we’re not seeing any signs of panic buying in the market. Given the current volatility, we prefer to maintain a cautious stance in the near term.”

Written: Kat Yun Yun 

Edited: Rochelle Nguyen