Shenhua Auction: Arbitrage activities drive off-take rates for homo-PP and LLDPE
Shenhua Baotou Coal Chemical Co., China’s largest coal-based petrochemical producer, concluded its auction session on 14 July 2025 with notable performance in select grades
Shenhua Baotou Coal Chemical Co., China’s largest coal-based petrochemical producer, concluded its auction session on 14 July 2025 with notable performance in select grades. Sales were led by homo-PP yarn and linear LLDPE film, while other products struggled to attract interest.
|
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 |
1653 |
1429 |
6500 |
$802 |
6500-7150 |
$802-882 |
86.4% |
|
PPH Fiber |
66 |
0 |
7200 |
$889 |
- |
- |
0.0% |
|
PPBC |
233 |
0 |
7100 |
$876 |
- |
- |
0.0% |
|
LL Film |
466 |
466 |
6950 |
$858 |
6950-7140 |
$858-881 |
100.0% |
|
HD Film |
100 |
0 |
7600 |
$938 |
- |
- |
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 the bearish sentiment across the Dalian Commodity Exchange, Shenhua achieved commendable sell-through rates for homo-PP yarn and LLDPE film, reflecting robust demand from arbitrage traders capitalising on the price differential between the physical and futures markets.
A market participant remarked, “Converters remained cautious with restocking, citing sluggish demand for finished goods. At the same time, many buyers are adopting a wait-and-see approach ahead of potential tariff announcements expected in early August.”
Written: Kat Yun Yun
Edited: Rochelle Nguyen