CommoPlast Article

Shenhua Baotou Coal Chemical Co., China’s largest coal-based petrochemical producer, concluded its auction 29 July 2025, with the results for prime grades as follows:

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	882	816	7000	$863	7020-7100	$865-875	92.5%
PPBC	350	350	6650	$820	6690-6980	$825-860	100.0%
LL Film	500	500	7000	$863	7030-7220	$866-890	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.

Trading activities on the Shenhua Auction Platform registered a notable improvement in deal volumes today, aided primarily by a modest recovery in futures contracts on the Dalian Commodity Exchange.

According to market sources, firmer futures pricing during morning trading helped underpin confidence, prompting some converters to re-enter the market. Buyers who had postponed purchases earlier in the week took the opportunity to replenish inventories, supporting a stronger sell-through rates.

Nonetheless, the uptick in transactions did little to dispel the overall lackluster sentiment in the domestic market. A trader reported, “Although the CNY 50/ton discount Shenhua offered on the LLDPE cargoes was of the same magnitude compared to the domestic spot market, the lower starting price point made these coal-based parcels way more attractive.”

While today’s result may point to the early formation of a tentative price floor, most players remain hesitant to call it a turning point. A sustained recovery, they say, will require not only firmer futures support, but also a seasonal lift in demand and renewed strength from downstream industries.

Shenhua Auction: Futures rebound, but broader demand yet to firm