Shenhua Auction: Strong sell-through despite price hikes amid renewed market optimism
Notably, these results came despite moderate upward price adjustments for both homo-PP and LLDPE compared to the preceding session—suggesting that the market is gaining confidence in a broader recovery.
Shenhua Baotou Coal Chemical Co., China’s largest coal-based petrochemical producer, concluded its auction on 14 May 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 |
1556 |
1556 |
7100 |
$870 |
7150-7400 |
$876-907 |
100.0% |
|
PPBC Inj |
300 |
193 |
7450 |
$913 |
7450-7510 |
$913-921 |
64.3% |
|
LL Film |
470 |
455 |
7180 |
$880 |
7280-7570 |
$892-928 |
96.8% |
|
*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:
Shenhua’s auction once again reflected a firm tone, as full allocation for PPH yarn and near-complete clearance for LLDPE film pointed to improved buying sentiment. Notably, these results came despite moderate upward price adjustments for both homo-PP and LLDPE compared to the preceding session—suggesting that the market is gaining confidence in a broader recovery.
The recent easing in US-China trade tensions appears to have injected fresh optimism into the domestic polyolefin market. Sentiment is shifting toward expectations that prices may soon revert to pre-trade war levels, especially if current momentum continues.
“At the current pace, the local market is expected to firm up further across the trading platform,” one trader observed, reflecting the growing bullishness among market participants.
Written: Kat Yun Yun
Edited: Rochelle Nguyen