Shenhua Auction: Sell-through rates dipped as buyers resisted higher price levels

Shenhua Baotou Coal Chemical Co., China’s largest coal-based petrochemical producer, concluded its auction on 17 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:

Trading sentiment on the Shenhua Auction Platform showed signs of softening, particularly in the homo-PP segment, as buyers adopted a more cautious stance amid growing uncertainty in the broader economic environment. The reduced appetite for additional purchases reflects hesitation to commit at elevated price levels.

While LLDPE film continued to draw solid interest, achieving a 100% sell-through rate, homo-PP saw a moderate drop in demand. The weakened response to the latter indicates a sharp pushback against price increases, especially as regional buyers reassess downstream demand fundamentals.

“Buyers remained highly price-sensitive. Many continued to question the sustainability of the current upswing as the market battles weak finished goods demand and an uncertain macroeconomic outlook,” a market source commented.

The geopolitical backdrop also played a role in dampening procurement interest. With international efforts underway to ease Middle East tensions, several participants preferred to hold off on volume commitments until greater clarity emerges on oil and feedstock cost trajectories.

Written: Kat Yun Yun 

Edited: Rochelle Nguyen