Shenhua Auction: Higher deal volumes on price flexibility, but market sentiment stays tepid
Shenhua saw a marked improvement in deal volumes this session, driven by a more aggressive pricing strategy and firmer cues from the futures market. PPH yarn posted an 80% deal rate, while HDPE film achieved a near sell-out.
Shenhua Baotou Coal Chemical Co., China’s largest coal-based polyolefins producer, concluded its latest auction on 26 June 2025 with improved deal performance across key grades, supported by discounted pricing and a rebound in Dalian Commodity Exchange futures.
|
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 |
1771 |
1416 |
6950 |
$858 |
7040-7220 |
$869-891 |
80.0% |
|
PPBC Inj |
500 |
160 |
6800 |
$839 |
7200-7250 |
$889-895 |
32.0% |
|
HD Film |
150 |
146 |
7640 |
$943 |
7730-7740 |
$954-955 |
97.3% |
|
LL Film |
100 |
0 |
7240 |
$894 |
- |
- |
0.0% |
|
*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. |
|||||||
Auction platform: https://www.e-chnenergy.com
Auction time: Monday – Friday, 10 AM – 12 PM
Key takeaways:
Shenhua saw a marked improvement in deal volumes this session, driven by a more aggressive pricing strategy and firmer cues from the futures market. PPH yarn posted an 80% deal rate, while HDPE film achieved a near sell-out. However, the relatively high auction volumes raised questions over potential inventory pressure at the producer’s end.
Market participants believe the company may be accelerating sales to clear stock ahead of the month-end, especially amid signs of easing geopolitical tensions in the Middle East. The sell-down strategy is further underscored by notable price cuts: homo-PP auction prices fell by CNY 50/ton from the previous week, while PP block copolymer dropped by a steeper CNY 180/ton.
Compared to the previous week, auction price for homo-PP fell by CNY 50/ton while PP block copolymer plunged by CNY 180/ton.
Despite the stronger sell-through, overall sentiment remains subdued. A local trader observed, “The weak tone in recent sessions is clearly affecting sales. We expect prices to stay range-bound for now, with limited drivers to lift confidence in the short term.”
Written: Kat Yun Yun
Edited: Rochelle Nguyen