Shenhua Auction: Higher futures and strategic discounts drive sell-through gains
Shenhua’s decision to apply CNY 30–50/ton discounts to its starting bids offered additional incentive, attracting renewed interest from arbitrage traders and restocking buyers.
Shenhua Baotou Coal Chemical Co., China’s largest coal-based petrochemical producer, concluded its 01 July 2025 auction with significantly improved sell-through rates, supported by a rebound in futures markets and competitive pricing strategies.
|
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 |
1730 |
1407 |
6970 |
$860 |
7020-7190 |
$866-887 |
81.3% |
|
BOPP |
100 |
0 |
7710 |
$952 |
- |
- |
0.0% |
|
PPBC |
230 |
100 |
7200 |
$889 |
7210-7220 |
$890-891 |
43.5% |
|
LL Film |
400 |
399 |
7000 |
$864 |
7000-7180 |
$864-886 |
99.8% |
|
HD Film |
100 |
0 |
7700 |
$950 |
- |
- |
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:
Sell-through performance saw a notable rebound from previous sessions, driven by a recovery in September PP and LLDPE futures on the Dalian Commodity Exchange. Shenhua’s decision to apply CNY 30–50/ton discounts to its starting bids offered additional incentive, attracting renewed interest from arbitrage traders and restocking buyers.
“In addition to the gains in polyolefin futures, coal futures also surged amid concerns over the government’s stricter enforcement on eliminating outdated production capacities,” a market trader commented. However, the source cautioned against interpreting this as a sustained rally, noting the broader market’s fragility.
Despite the uptick in auction activity, sentiment on the domestic spot market remains cautious. Weak downstream demand continues to restrain buying momentum, with most converters maintaining minimal procurement volumes pending clearer signs of recovery in end-product orders.
Written: Kat Yun Yun
Edited: Rochelle Nguyen