Shenhua Auction: Aggressive discount drives robust uptake
Reflecting concerns displayed in the wider selling market, the Shenhua Auction Platform adopted a stable-to-softer pricing strategy as part of efforts to manage inventories ahead of month-end.
Shenhua Baotou Coal Chemical Co., China’s largest coal-based petrochemical producer, concluded its auction on 24 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 |
1140 |
1135 |
6980 |
$845 |
6980-7300 |
$845-884 |
99.6% |
|
LL Film |
406 |
378 |
7250 |
$879 |
7290-7600 |
$884-921 |
93.1% |
|
*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:
Reflecting concerns displayed in the wider selling market, the Shenhua Auction Platform adopted a stable-to-softer pricing strategy as part of efforts to manage inventories ahead of month-end. This approach helped sustain sales performance, with deals concluded staying above the 90% threshold across available grades.
In the homo-PP yarn segment, auction prices were cut by a steep CNY70/ton from the previous session. LLDPE, meanwhile, maintained auction prices roughly CNY400/ton below the average spot prices. The discounts preserved some buying interest as customers returned for selective, needs-based procurement in an otherwise weak market.
Still, caution prevailed. Some participants viewed the price cut in the homo-PP yarn segment as a sign of underlying selling pressure. “Without clear demand-side fundamentals, this uptrend could prove fragile,” one player remarked.
Written by: Kat Yun Yun
Edited by: Derek Yong