Shenhua Auction: Buying sentiment weak at start of new month

Shenhua Baotou Coal Chemical Co., China’s largest coal-based petrochemical producer, concluded its auction 01 September 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 takeaway:

Shenhua concluded the first trading session of the month on a subdued note, with PP transactions limited and LLDPE film entirely unsold. The outcome corresponds with developments on the Dalian Commodity Exchange, where PP and LLDPE futures extended losses in the morning session, reaching their lowest levels since late May 2025. The weaker futures environment appeared to weigh on physical market activity, reinforcing a cautious stance among converters despite the lower auction prices.

“Market sentiment was muted this morning, with most buyers staying on the sidelines after seeing the weak overall atmosphere,” a local trader said. 

Within the auction, homo-PP yarn saw a take-up of just 29.1%, while PPBC Injection cleared 19.9% of the offered volume. Meanwhile, no transactions were recorded for LLDPE. 

Overall, Monday’s results illustrate a cautious, wait-and-see approach among participants, with attention primarily on immediate production requirements rather than speculative purchases. Market pressure is likely to persist in the near term, as participants continue to monitor both futures movements and September supply updates for clearer pricing signals.

Written: Kat Yun Yun 

Edited: Aiman Haikal