Shenhua Auction: Transactions remained resilient amid futures-led optimism
Shenhua’s decision to keep auction starting prices largely unchanged from the previous Friday lent additional appeal to the offers, particularly in light of firming spot market sentiment.
Shenhua Baotou Coal Chemical Co., China’s largest coal-based petrochemical producer, concluded its auction on 21 July 2025 with strong performance in key product segments, notably homo-PP yarn and LLDPE film, amid a modest recovery in Dalian futures prices.
|
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 |
1350 |
1348 |
6920 |
$853 |
6970-7100 |
$859-875 |
99.9% |
|
PPH Inj |
266 |
100 |
7000 |
$863 |
7030 |
$866 |
19.9% |
|
PPBC |
150 |
0 |
6890 |
$849 |
- |
- |
0.0% |
|
LL Film |
300 |
300 |
6920 |
$853 |
6980-7130 |
$860-879 |
100.0% |
|
HD Film |
50 |
0 |
7550 |
$931 |
- |
- |
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:
Demand for homo-PP yarn and LLDPE film remained resilient, underpinned by a modest rebound in futures contracts on the Dalian Commodity Exchange. Shenhua’s decision to keep auction starting prices largely unchanged from the previous Friday lent additional appeal to the offers, particularly in light of firming spot market sentiment.
Arbitrage traders were notably more active during the session, responding to improved margins following gains in PP and LLDPE futures. However, the participation of these buyers remains highly price-sensitive, with a tendency to retreat swiftly once arbitrage windows narrow.
“The domestic spot market has rebounded to reflect the stronger futures trading, but Shenhua kept auction prices largely unchanged from last Friday, making them comparatively more attractive,” a market source noted.
Despite the positive auction turnout, market sentiment remains cautious. Players are still looking for more concrete signs of a sustained downstream recovery, with macroeconomic challenges and seasonal slowdown continuing to weigh on near-term outlooks.
Written: Kat Yun Yun
Edited: Rochelle Nguyen