Shenhua Auction: Minor discounts triggered diverged buying sentiment
Sentiment on the Shenhua Auction Platform remained subdued, with PP continuing to lag behind despite the producer’s attempts to stimulate demand.
Shenhua Baotou Coal Chemical Co., China’s largest coal-based petrochemical producer, concluded its auction 19 August 2025, with the results for prime grades as follows:
|
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 |
1704 |
1049 |
6750 |
$832 |
6870-7050 |
$847-869 |
61.6% |
|
PPH Inj |
50 |
0 |
6800 |
$838 |
- |
- |
0.0% |
|
PPBC |
150 |
61 |
7100 |
$875 |
7100 |
$875 |
40.7% |
|
LL Film |
350 |
300 |
7120 |
$878 |
7180 |
$885 |
85.7% |
|
*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. |
|||||||
Auction platform: https://www.e-chnenergy.com
Auction time: Monday – Friday, 10 AM – 12 PM
Key takeaways:
Sentiment on the Shenhua Auction Platform remained subdued, with PP continuing to lag behind despite the producer’s attempts to stimulate demand. Trading dynamics were weighed down by ongoing weakness in the Dalian Commodity Exchange, where futures continued to erode confidence.
To encourage participation, Shenhua trimmed auction prices for both PP and LLDPE by CNY 20/ton in response to soft futures activity during early trading hours. The adjustment succeeded in sustaining a relatively strong sell-through rate for LLDPE at nearly 86%. However, PP buyers remained largely indifferent, leaving deal volumes lacklustre.
The underwhelming performance in PP reflects a market still grappling with abundant domestic supply and limited export momentum. These conditions have left buyers cautious, preferring to monitor market direction rather than commit to fresh procurement.
Written: Kat Yun Yun
Edited: Aiman Haikal