Shenhua Auction: Pessimism persists as July opens with weak buying appetite
The discounts were not enough to offset prevailing market pessimism, particularly as Dalian Commodity Exchange futures continued to trend lower, reinforcing a bearish sentiment.
Shenhua Baotou Coal Chemical Co., China’s largest coal-based polyolefin producer, kicked off July trading on a subdued note, with its 01 July 2025 auction revealing deepening caution across the domestic market.
The results for prime grades are summarised below:
|
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 |
1480 |
829 |
7000 |
$865 |
7000-7190 |
$865-889 |
56.0% |
|
PPBC |
100 |
93 |
7200 |
$890 |
7220-7230 |
$892-894 |
93.0% |
|
LL Film |
400 |
32 |
7050 |
$871 |
7200 |
$890 |
8% |
|
HD Film |
100 |
0 |
7700 |
$952 |
- |
- |
0.0% |
|
*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:
Despite offering notable price reductions—CNY 110/ton lower for homo-PP yarn and CNY 190/ton down for LLDPE film compared to the previous session—Shenhua struggled to generate meaningful buying interest. The discounts were not enough to offset prevailing market pessimism, particularly as Dalian Commodity Exchange futures continued to trend lower, reinforcing a bearish sentiment.
"July is typically a low-demand month, but this year feels particularly weak,” one bidder commented. “There’s no visible catalyst for a rebound, and most market participants remain on the sidelines.”
Written: Kat Yun Yun
Edited: Rochelle Nguyen