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Shenhua Auction: Trading sentiment weakened as buyers resisted higher pricesThe producer’s move to increase the auction price for homo-PP yarn by CNY 100/ton compared to the previous session met with notable resistance from market participants, particularly against a backdrop of declining futures on the Dalian Commodity Exchange. |
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Shenhua Baotou Coal Chemical Co., China’s largest coal-based petrochemical producer, concluded its auction on 08 May 2025, with the results for prime grades as follows:
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Product |
Auction Volume |
Deal Volume |
Auction Prices |
Deal Prices |
Deal % |
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CNY/ton |
USD/ton |
CNY/ton |
USD/ton |
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Combined and reported by CommoPlast |
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PPH Yarn |
1530 |
1113 |
7050 |
$863 |
7100-7340 |
$869-898 |
72.7% |
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PPBC Inj |
383 |
0 |
7100 |
$869 |
- |
- |
0.0% |
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LL Film |
570 |
362 |
7150 |
$875 |
7180-7450 |
$879-912 |
63.5% |
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*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:
As widely anticipated, buying enthusiasm on the Shenhua Auction Platform weakened considerably. The producer’s move to increase the auction price for homo-PP yarn by CNY 100/ton compared to the previous session met with notable resistance from market participants, particularly against a backdrop of declining futures on the Dalian Commodity Exchange.
This shift led to a significant reduction in trading volumes across the board. Sell-through rates for both PP and LLDPE dropped sharply by approximately 26–27% compared to the previous auction, underscoring both the market’s fragility and the growing price sensitivity among buyers.
Written: Kat Yun Yun
Edited: Rochelle Nguyen
Country
China
