Shenhua Auction: Softer deal prices support transactions as Golden Week draws near
Shenhua’s latest auction improved compared with last Friday, but deal prices softened, indicating that converters were securing only essential volumes rather than building inventories.
Shenhua Baotou Coal Chemical Co., China’s largest coal-based petrochemical producer, concluded its 22 September auction with mixed results across prime grades. Homo-PP yarn and LLDPE film attracted the bulk of transactions, while demand for HD film and PP block copolymer remained subdued, leaving a sizeable portion of volumes unsold.
|
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 |
1416 |
942 |
6700 |
$834 |
6700-6840 |
$834-851 |
66.5% |
|
PPBC Inj |
400 |
66 |
6500 |
$809 |
6500 |
$809 |
16.5% |
|
LL Film |
450 |
316 |
6900 |
$859 |
6900-7130 |
$859-887 |
70.2% |
|
HD Film |
100 |
33 |
7100 |
$884 |
7100 |
$884 |
33.0% |
|
*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
Shenhua’s latest auction improved compared with last Friday, but deal prices softened, indicating that converters were securing only essential volumes rather than building inventories. LLDPE film maintained relatively firm performance, supported by agricultural and packaging demand, while PP yarn registered larger deal volumes thanks to more attractive deal prices.
On the Dalian Commodity Exchange, PP and LLDPE futures extended losses during the morning session, reinforcing the cautious tone. The weak board echoed the auction outcome, where buying interest persisted but was underpinned by price concessions rather than confidence in a recovery.
Market participants noted that domestic producers have been offering additional discounts to accelerate sales before the upcoming holiday. “There are still significant allocations left for this month, so we don’t expect any price rebound in the near term,” a trader commented.
With only limited trading days remaining, sentiment across the polyolefin complex is expected to remain under pressure, with near-term direction hinging on post-holiday demand signals.
Written by: Kat Yun Yun
Edited by: Aiman Haikal