Shenhua Auction: Procurement improved, buoyed by firm futures opening
Procurement activity on the Shenhua Auction Platform saw a modest improvement, initially supported by a firm opening on the Dalian Commodity Exchange. However, sentiment softened as the session progressed
Shenhua Baotou Coal Chemical Co., China’s largest coal-based petrochemical producer, concluded its auction on 18 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 |
1035 |
1034 |
7050 |
$855 |
7090-7270 |
$859-881 |
99.9% |
|
PPBC Inj |
300 |
300 |
6850 |
$830 |
6860-7120 |
$832-863 |
100.0% |
|
LL Film |
670 |
482 |
7250 |
$879 |
7250-7420 |
$879-900 |
71.9% |
|
*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. |
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Auction platform: https://www.e-chnenergy.com
Auction time: Monday – Friday, 10 AM – 12 PM
Key takeaways:
Procurement activity on the Shenhua Auction Platform saw a modest improvement, initially supported by a firm opening on the Dalian Commodity Exchange. However, sentiment softened as the session progressed, with futures reversing course and closing in negative territory.
In the LLDPE segment, acceptance rates rose for a third consecutive session, slightly narrowing the gap with homo-PP yarn. Still, the uptick—just 4%—left a substantial 28% differential between the two grades, underscoring continued buyer preference for homo-PP amid its relatively more stable performance in the spot market.
Meanwhile, looming market headwinds added to the cautious tone, particularly with the Labour Day holiday (1–5 May) approaching. “Buyers remain reluctant to restock, and are keeping inventories under close watch ahead of what is expected to be a subdued trading period,” one participant noted.
Written by: Kat Yun Yun
Edited by: Derek Yong