Shenhua Auction: Discounts failed to ignite buying interest as eyes are on US’s reciprocal tariffs
Despite early gains in major PP and LLDPE contracts on the Dalian Commodity Exchange, expectations for strong sales at the Shenhua Auction Platform fell short. Market participants were left disappointed as transaction volumes remained subdued,
Shenhua Baotou Coal Chemical Co., China’s largest coal-based petrochemical producer, concluded its auction on 01 April 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 |
1250 |
1029 |
7020 |
$855 |
7080-7330 |
$862-892 |
82.3% |
|
PPH Inj |
100 |
0 |
7150 |
$870 |
- |
- |
0.0% |
|
LL Film |
1070 |
602 |
7730 |
$941 |
7730-7860 |
$941-957 |
56.3% |
|
*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:
Despite early gains in major PP and LLDPE contracts on the Dalian Commodity Exchange, expectations for strong sales at the Shenhua Auction Platform fell short. Market participants were left disappointed as transaction volumes remained subdued, even with lower price levels.
Shenhua reduced its auction prices for homo-PP by CNY 80/ton and LLDPE by CNY 30/ton compared to the previous session. However, this failed to stimulate demand, as Chinese buyers exhibited a cautious stance, deferring purchases ahead of the US’s reciprocal tariffs set to take effect on 2 April. The looming tariff implementation is expected to have significant repercussions on the futures market, prompting a wait-and-see approach across the sector.
Written by: Kat Yun Yun
Edited by: Rochelle Nguyen