Shenhua Auction: Mild futures rebound and discounted prices lift buying interest

Shenhua Baotou Coal Chemical Co., China’s largest coal-based petrochemical producer, concluded its auction on 06 February 2026, 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’s auction platform ended the week on a firmer note, with clearance rates recovering from Thursday’s slump. The improvement in deal flow was catalyzed by a strategic adjustment in asking prices, which coincided with a mild intraday rebound in futures on the Dalian Commodity Exchange. The combination offered a brief window of value for buyers looking to secure material ahead of the weekend.

To stimulate demand, Shenhua lowered starting auction prices for PP homo yarn and LLDPE film by CNY 50/ton compared to the previous session. PP injection grades saw a more aggressive reduction of CNY 100/ton. These discounts helped offset early weakness in the futures market; although Dalian futures opened on a softer note, they staged a modest recovery during the morning session, lending enough support to lift homo-PP yarn uptake to 85.7%.

Despite the better numbers, underlying sentiment remains fragile. “Buying activity has been inconsistent and generally weak throughout the week,” a local player noted. “With the weekend approaching and the long holiday drawing closer, market sentiment is expected to turn even quieter next week as logistics services begin to scale back.”

Market participants anticipate that trading liquidity will drain rapidly in the coming days. In the near term, prices are expected to remain range-bound, with the majority of converters adopting a passive stance as they wait for clearer market direction to emerge after the Lunar New Year holiday.

Written by: Kat Yun Yun 

Edited by: Aiman Haikal