CommoPlast | Article - Shenhua Auction: Selling activity improved on strong futures opening, but bidding strategies remained cautious

Shenhua Baotou Coal Chemical Co., China’s largest coal-based petrochemical producer, concluded its auction on 26 March 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	1028	1022	7020	$856	7040-7310	$858-891	99.4%
PPH Inj	242	242	6950	$847	6970-6980	$850-851	100.0%
LL Film	800	610	7750	$945	7750-7800	$945-951	76.3%
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:

The Shenhua Auction Platform recorded stronger selling activity from the previous day, underpinned by a firm start in futures trading. However, bidding strategies remained prudent as buyers pointed to persistently weak demand across the broader domestic market.

Although the LLDPE segment saw a 14.3% increase in uptake, buyers were selective, securing volumes at CNY10-50/ton below the prior day. The resistance toward firmer offers was further reinforced by the weaker performance of LLDPE relative to PP derivatives on the Dalian Commodity Exchange.

Meanwhile, homo-PP cargoes traded just shy of full clearance for a third consecutive session. However, purchases continued to be largely driven by immediate requirements rather than stockpiling.

Written by: Kat Yun Yun

Edited by: Derek Yong

Country

China