Shenhua Auction: Sentiment cools ahead of weekend, but supply concerns keep market outlook firm
Shenhua wrapped up its final trading session of the week on a relatively firm note, though the sell-through rate for homo-PP slipped to 77% following a modest CNY 40/ton increase in the auction starting price.
Shenhua Auction: Sentiment cools ahead of weekend, but supply concerns keep market outlook firm
Shenhua Baotou Coal Chemical Co., China’s largest coal-based petrochemical producer, concluded its auction on 19 June 2025 with mixed results across key prime grades. Despite softer sentiment heading into the weekend, market fundamentals suggest continued support in the near term.
|
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 |
1680 |
1293 |
7050 |
$869 |
7120-7320 |
$878-902 |
77.0% |
|
BOPP |
300 |
300 |
7200 |
$887 |
7200 |
$887 |
100.0% |
|
PPBC Inj |
164 |
100 |
6800 |
$838 |
7300 |
$900 |
61.0% |
|
LL Film |
50 |
50 |
7350 |
$906 |
7390 |
$911 |
100.0% |
|
*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. |
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Auction platform: https://www.e-chnenergy.com
Auction time: Monday – Friday, 10 AM – 12 PM
Key takeaways:
Shenhua wrapped up its final trading session of the week on a relatively firm note, though the sell-through rate for homo-PP slipped to 77% following a modest CNY 40/ton increase in the auction starting price. The price hike met with muted response, signalling a brief cooling in buying appetite ahead of the weekend.
Still, traders and market participants suggest the pullback in activity may be short-lived. A persistent uptrend in international crude oil benchmarks, coupled with firmer futures on the Dalian Commodity Exchange, is expected to lend underlying support to spot sentiment.
Moreover, the ongoing geopolitical volatility in the Middle East continues to fuel supply-side concerns, particularly for China’s import-dependent sectors. These factors may limit downside potential and keep sellers in a strong bargaining position going into next week.
Written: Kat Yun Yun
Edited: Rochelle Nguyen