Shenhua Auction: Sell-throughs see mild uptick amid firmer futures, but late-month caution persists

Shenhua Baotou Coal Chemical Co., China’s largest coal-based petrochemical producer, concluded its auction on 23 April 2025, with the results for prime grades as follows:

Auction platform: https://www.e-chnenergy.com  

Auction time: Monday – Friday, 10 AM – 12 PM 

Key takeaways:

The Shenhua Auction Platform closed its morning session with a modest improvement in sell-through rates, supported by gains in the energy and futures markets. Broader macroeconomic sentiment received a lift after Washington signalled openness to resuming trade negotiations with Beijing, raising prospects of reduced economic strain.

Still, the limited scale of improvement—1.4% for homo-PP yarn and 10.6% for LLDPE film—underscored the market’s ongoing caution, particularly with month-end sales pressures looming.

In the spot market, traders continued to issue minor discounts on LLDPE despite a rebound in futures, reflecting sustained selling pressure and unmet sales targets following weeks of subdued demand. This placed material held on hand at continued risk of devaluation, keeping auction buyers cautious.

Meanwhile, market participants remained wary of whether gains in the futures and energy markets could offer lasting support. “These sectors are inherently volatile and sentiment-driven,” one trader remarked. “Any return of pessimism could see demand erode just as quickly as it arrived.”

Written by: Kat Yun Yun 

Edited by: Derek Yong