Shenhua Auction: Sell-through rates rebounded on stronger futures
Buoyed by the ongoing strength in Dalian Commodity Exchange futures, Chinese buyers exhibited renewed confidence, pushing Shenhua’s overall sell-through rate markedly higher compared to previous sessions.
Shenhua Baotou Coal Chemical Co., China’s largest coal-based petrochemical producer, concluded its 03 July 2025 auction with noticeably stronger participation, as improved market sentiment and favourable arbitrage opportunities drew buyers back to the platform.
|
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 |
1780 |
1650 |
7000 |
$865 |
7030-7180 |
$869-887 |
92.7% |
|
BOPP |
100 |
0 |
7100 |
$878 |
- |
- |
0.0% |
|
PPBC |
324 |
92 |
7050 |
$871 |
7230-7240 |
$894-895 |
28.4% |
|
LL Film |
400 |
400 |
7000 |
$865 |
7000-7210 |
$8685-891 |
100.0% |
|
HD Film |
100 |
0 |
7700 |
$952 |
- |
- |
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:
Buoyed by the ongoing strength in Dalian Commodity Exchange futures, Chinese buyers exhibited renewed confidence, pushing Shenhua’s overall sell-through rate markedly higher compared to previous sessions. PPH yarn and LLDPE film stood out, achieving near-full and full clearance respectively, as arbitrage traders re-entered the market.
“The deal prices remain appealing for arbitrage, particularly against Dalian futures. But this advantage could evaporate quickly if the price spread narrows,” a market participant commented.
Despite the improved trading atmosphere, underlying demand remains fragile. Sources cautioned that the uptick in auction results may be driven more by short-term trading incentives than by fundamental recovery in downstream consumption.
Written: Kat Yun Yun
Edited: Rochelle Nguyen