Shenhua Auction: Lower offers nudge deals higher, but caution prevails
The price adjustment helped stimulate higher deal volumes for key grades like PPH yarn and LLDPE film, though HDPE continued to see zero takers.
Shenhua Baotou Coal Chemical Co., China’s largest coal-based polyolefins producer, concluded its 08 July 2025 auction with modest improvement in transaction volumes, supported by a strategic downward adjustment in starting offers. However, buyer sentiment remained guarded, with purchases largely confined to immediate needs.
|
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 |
1936 |
1160 |
6700 |
$827 |
6990-7130 |
$863-880 |
59.9% |
|
PPBC |
432 |
86 |
6700 |
$827 |
7100-7150 |
$876-882 |
19.9% |
|
LL Film |
400 |
299 |
6950 |
$858 |
6950-7100 |
$858-876 |
74.8% |
|
HD Film |
100 |
0 |
7650 |
$944 |
- |
- |
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:
Shenhua’s move to cut auction prices by CNY 150/ton for homo-PP and CNY 50/ton for LLDPE marked a tactical shift to stay competitive amid softening demand. The price adjustment helped stimulate higher deal volumes for key grades like PPH yarn and LLDPE film, though HDPE continued to see zero takers.
“The announcement of reciprocal trade tariffs by the United States didn’t bring any major surprises, which eased some of the market’s earlier anxiety,” said a trader. “There’s a bit more buying interest today, but it’s still mostly hand-to-mouth.”
Despite the slight uptick in transactions, the broader sentiment remains subdued. Buyers remain hesitant to take long positions as macroeconomic headwinds, including global trade uncertainties and demand-side risks, continue to cloud the near-term outlook.
Written: Kat Yun Yun
Edited: Rochelle Nguyen