Shenhua Auction: Further discounts and futures rebound spark demand recovery
Shenhua’s auction opened the week with revived buying interest at the start of the week, supported by a technical rebound in the Dalian Commodity Exchange.
Shenhua Baotou Coal Chemical Co., China’s largest coal-based petrochemical producer, concluded its auction 15 December 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 |
1450 |
1233 |
5800 |
$728 |
5850-6190 |
$734-777 |
85.0% |
|
LL Film |
800 |
733 |
6340 |
$796 |
6340-6490 |
$796-815 |
91.6% |
|
*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
Shenhua’s auction opened the week with revived buying interest at the start of the week, supported by a technical rebound in the Dalian Commodity Exchange May 2026 contract and targeted price cuts aimed at clearing volumes. The producer lowered opening bids for key grades, lifting transaction rates sharply from the weak turnout seen last Friday.
Futures provided a more constructive backdrop in the morning session, with both PP and LLDPE rebounding from recent lows. This improvement in sentiment, combined with Shenhua’s decision to reset auction floors, encouraged buyers to step in and address near-term replenishment needs.
Homo-PP yarn opening prices were reduced by CNY 50/ton to CNY 5,800/ton, pushing the deal rate to 85%, compared with 54% at the previous auction. LLDPE film saw a steeper cut of about CNY 120/ton, opening at CNY 6,340/ton and achieving a 91.6% clearance rate, as converters found the pricing compelling.
Market participants said the gap between auction and spot prices was a key driver of liquidity. While spot sellers largely held offers steady, Shenhua’s discounted auction levels presented a clear cost advantage. “The futures rebound helped sentiment, but the real trigger was the price adjustment,” a local trader said, adding that buyers remained cautious but were willing to lock in volumes at lower levels amid expectations of a technical bounce.
Despite the stronger turnover, caution persists over the medium-term outlook. Participants were reluctant to interpret the improved activity as a definitive market floor, viewing it instead as opportunistic buying. Focus is now shifting to whether futures can sustain recent gains and whether downstream demand will emerge to support these lower price levels in the days ahead.
Written by: Kat Yun Yun
Edited by: Aiman Haikal