Shenhua Auction: Strong sell-through despite market caution amid geopolitical jitters
Despite a weakening trend in PP and LLDPE futures on the Dalian Commodity Exchange, Shenhua's auction managed to draw solid buying interest—particularly for PPH yarn and LLDPE film
Shenhua Baotou Coal Chemical Co., China’s leading coal-based polyolefins producer, concluded its online auction on 23 June 2025 with mostly healthy sales across key grades, even as broader market sentiment remained cautious in light of escalating Middle East tensions.
|
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 |
1975 |
1695 |
7050 |
$868 |
7100-7310 |
$874-900 |
85.8% |
|
BOPP |
300 |
64 |
7200 |
$886 |
7200 |
$886 |
21.3% |
|
PPBC Inj |
100 |
0 |
7300 |
$898 |
- |
- |
0.0% |
|
LL Film |
100 |
100 |
7330 |
$902 |
7390 |
$910 |
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:
Despite a weakening trend in PP and LLDPE futures on the Dalian Commodity Exchange, Shenhua's auction managed to draw solid buying interest—particularly for PPH yarn and LLDPE film, which recorded high sell-through rates. Market players attributed the healthy participation to arbitrage opportunities, as deal prices remained competitive relative to Dalian futures benchmarks.
“The pricing was favourable for arbitrage, which brought some traders back into action,” a market source noted.
However, underlying sentiment stayed subdued. With the Iran–Israel conflict intensifying and crude oil markets reacting sharply, many buyers opted for a wait-and-see stance, limiting purchases to essential restocking only.
“We are closely tracking developments in the Middle East. Volatility in crude oil could quickly spill into polyolefin pricing. Until there's more clarity, we're maintaining a cautious approach,” said a Chinese buyer.
Written: Kat Yun Yun
Edited: Rochelle Nguyen