Shenhua Auction: Price cuts supported sell-through rates amid sluggish sentiment

Shenhua Baotou Coal Chemical Co., China’s largest coal-based petrochemical producer, concluded its auction 15 August 2025, with the results for prime grades as follows:

Auction platform: https://www.e-chnenergy.com  

Auction time: Monday – Friday, 10 AM – 12 PM 

Key takeaways:

Shenhua concluded the final auction of the week on a largely stable note as the coal-based producer proactively introduced selective price reductions to lure buyers to the platform amid weakening futures contracts on the Dalian Commodity Exchange.

Compared to the previous session, auction prices were trimmed by CNY 50/ton for homo-PP and CNY 30/ton for LLDPE film. These adjustments, though modest, managed to captured buyers’ attention. 

However, underlying demand remained tepid. According to a trader, it is a typical trend heading into the weekend, where market activity slowed, with many buyers opting to delay purchases until clearer price signals emerge next week. While discounted offers provided near-term relief, the overall tone remained cautious.

The market’s restrained approach could likely reflect persistent macroeconomic headwinds. July data underscored the fragility of China’s recovery, with retail sales and manufacturing activity both underperforming. Industrial output rose 5.7% year-on-year, the slowest pace since November and down from June’s 6.8% growth. Retail sales growth eased to 3.7%, the weakest reading this year, from 4.8% previously, while the surveyed urban unemployment rate climbed above expectations to 5.2%. For now, Beijing appears to be maintaining a wait-and-see stance on additional stimulus, with top leaders signaling they will stick to existing supportive measures and stand ready to inject further aid if needed.

Written by: Kat Yun Yun 

Edited by: Farid Muzaffar