Shenhua Auction: Rigid pricing on LLDPE repels buyers from auction platform
Trading sentiment on the Shenhua Auction Platform remained largely unchanged as the week progressed, despite a rebound in the Dalian Commodity Exchange. Chinese buyers continued to show reluctance in securing additional cargoes
Shenhua Baotou Coal Chemical Co., China’s largest coal-based petrochemical producer, concluded its auction on 19 March 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 |
1427 |
906 |
7100 |
$868 |
7120-7330 |
$870-896 |
63.5% |
|
PPH Inj |
300 |
200 |
6950 |
$850 |
6950-6960 |
$9950-951 |
66.7% |
|
PPBC Inj |
100 |
0 |
7010 |
$857 |
- |
- |
0.0% |
|
LL Film |
640 |
80 |
7900 |
$966 |
7900 |
$966 |
12.5% |
|
*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. |
|||||||
Auction platform: https://www.e-chnenergy.com
Auction time: Monday – Friday, 10 AM – 12 PM
Key takeaways:
Trading sentiment on the Shenhua Auction Platform remained largely unchanged as the week progressed, despite a rebound in the Dalian Commodity Exchange. Chinese buyers continued to show reluctance in securing additional cargoes, particularly for LLDPE film, due to persistently weak downstream demand and comfortable supply.
Shenhua managed to sell only 12.5% of its auction volume for coal-based LLDPE film, a direct consequence of its rigid pricing strategy amid a sluggish market. While the domestic spot price declined by another CNY 50/ton day-on-day, Shenhua’s decision to keep auction prices unchanged further deterred buyers.
Written by: Kat Yun Yun
Edited by: Rochelle Nguyen