Shenhua Auction: Sales on Shenhua Auctions nearly froze as the futures market crash eroded buyers confidence
The Shenhua Auction Platform saw minimal procurement activity, mirroring an intraday futures market crash—down 1.25% for PP and 3.08% for LLDPE. Escalating US-China trade frictions remained central to buyer concerns
Shenhua Baotou Coal Chemical Co., China’s largest coal-based petrochemical producer, concluded its auction on 03 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 |
1150 |
200 |
7020 |
$850 |
7120 |
$862 |
17.4% |
|
PPH Inj |
100 |
0 |
7020 |
$850 |
- |
- |
0.0% |
|
LL Film |
800 |
0 |
7650 |
$926 |
- |
- |
0.0% |
|
*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. |
|||||||
Auction platform: https://www.e-chnenergy.com
Auction time: Monday – Friday, 10 AM – 12 PM
Key takeaways:
The Shenhua Auction Platform saw minimal procurement activity, mirroring an intraday futures market crash—down 1.25% for PP and 3.08% for LLDPE. Escalating US-China trade frictions remained central to buyer concerns, prompting a wait-and-see approach over immediate restocking.
Alert to subdued macroeconomic sentiments, the producer trimmed its PP and LLDPE prices by CNY30–50/ton to stimulate purchases. Despite this, deal completion rates remained tepid, with LLDPE seeing no concluded trades and homo-PP yarn reaching only 17.4%.
“The recent price adjustments—both at auction and in the spot market—do not appear to be driven by panic,” a market participant remarked. “The absence of aggressive discounting from producers suggests underlying restraint, even as macro pressures weigh on sentiment.”
Written by: Kat Yun Yun
Edited by: Derek Yong