Shenhua Auction: Auction sales plummeted on trade war uncertainties, obliterating LLDPE demand
Buyers on the Shenhua Auction Platform pulled back from procurement activity as they assessed the implications of the latest escalation in trade tensions, following the United States’ announcement of an additional 50% in tariffs
Shenhua Baotou Coal Chemical Co., China’s largest coal-based petrochemical producer, concluded its auction on 09 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 |
1240 |
536 |
7050 |
$849 |
7070-7230 |
$851-871 |
43.2% |
|
PPBC Inj |
200 |
0 |
8110 |
$856 |
- |
- |
0.0% |
|
LL Film |
800 |
0 |
7400 |
$891 |
- |
- |
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:
Buyers on the Shenhua Auction Platform pulled back from procurement activity as they assessed the implications of the latest escalation in trade tensions, following the United States’ announcement of an additional 50% in tariffs on Chinese goods, effective 9 April. This was on top of the 20% and 34% tariffs the US imposed on Chinese imports earlier.
The retreat was particularly stark in the LLDPE segment, where sell-through rates collapsed from 41.8% to zero despite CNY100/ton ($14/ton) discounts. Weakness in LLDPE futures further underscored the downturn, falling by CNY159/ton ($22/ton) over the morning session.
Meanwhile, a more stable PP futures contract lent modest sentimental support to homo-PP yarn buyers, with procurements holding at 43.2%. Nonetheless, procurement rates marked a sharp 56.7% drop from the previous day.
“Overall caution is high, as players are reassessing macroeconomic risks from escalating international trade tensions,” a market player commented.
Written by: Kat Yun Yun
Edited by: Derek Yong