Shenhua Auction: Competitive pricing supported strong auction results
The strategy appeared to widen the arbitrage window, drawing buyers back into the market despite broader volatility.
Shenhua Baotou Coal Chemical Co., China’s largest coal-based polyolefin producer, concluded its auction on 24 July 2025 with largely stable pricing for prime-grade materials, despite a rebound in futures trading on the Dalian Commodity Exchange.
|
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 |
1706 |
1666 |
7000 |
$866 |
7000-7120 |
$866-881 |
97.7% |
|
PPH Inj |
200 |
10 |
7050 |
$873 |
7050 |
$873 |
5.0% |
|
PPBC |
133 |
0 |
7100 |
$879 |
- |
- |
0.0% |
|
LL Film |
250 |
250 |
7090 |
$878 |
7120-7190 |
$881-890 |
100.0% |
|
*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:
Trading sentiment on the Shenhua Auction Platform remained robust heading into the weekend, underpinned by firmer futures contracts and the coal-based producer’s decision to maintain competitive, unchanged auction prices. The strategy appeared to widen the arbitrage window, drawing buyers back into the market despite broader volatility.
Polypropylene homo-PP yarn and LLDPE film grades attracted strong buying interest, with near-complete clearances. However, PP injection saw minimal engagement, while PP block copolymer failed to secure any deals—highlighting a persistent disparity in downstream demand recovery across PP segments.
Market players are increasingly monitoring Shenhua’s pricing behaviour amid mounting regulatory scrutiny over production safety and mining limit within the coal sector and heightened speculation around the enforcement of the government’s anti-involution directive. The producer’s future auctions could serve as a key indicator of near-term supply discipline and market sentiment within China’s polyolefin landscape.
Written: Kat Yun Yun
Edited: Rochelle Nguyen