CommoPlast Article

Shenhua Baotou Coal Chemical Co., China’s leading coal-based polyolefins producer, concluded its online auction on 23 June 2025 with mostly healthy sales across key grades, even as broader market sentiment remained cautious in light of escalating Middle East tensions.

Product	Auction Volume	Deal Volume	Auction Prices		Deal Prices		Deal %
Product	Auction Volume	Deal Volume	CNY/ton	USD/ton	CNY/ton	USD/ton	Deal %
*Combined and reported by CommoPlast*
PPH Yarn	1975	1695	7050	$868	7100-7310	$874-900	85.8%
BOPP	300	64	7200	$886	7200	$886	21.3%
PPBC Inj	100	0	7300	$898	-	-	0.0%
LL Film	100	100	7330	$902	7390	$910	100.0%
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.

Despite a weakening trend in PP and LLDPE futures on the Dalian Commodity Exchange, Shenhua's auction managed to draw solid buying interest—particularly for PPH yarn and LLDPE film, which recorded high sell-through rates. Market players attributed the healthy participation to arbitrage opportunities, as deal prices remained competitive relative to Dalian futures benchmarks.

“The pricing was favourable for arbitrage, which brought some traders back into action,” a market source noted.

However, underlying sentiment stayed subdued. With the Iran–Israel conflict intensifying and crude oil markets reacting sharply, many buyers opted for a wait-and-see stance, limiting purchases to essential restocking only.

“We are closely tracking developments in the Middle East. Volatility in crude oil could quickly spill into polyolefin pricing. Until there's more clarity, we're maintaining a cautious approach,” said a Chinese buyer.

Shenhua Auction: Strong sell-through despite market caution amid geopolitical jitters