Shenhua Auction: Sell-throughs remained robust ahead despite market headwinds
The auction results demonstrated steady demand despite weaker futures performance, with Shenhua opting to keep most auction prices flat compared to earlier sessions.
Shenhua Baotou Coal Chemical Co., China’s largest coal-based polyolefin producer, closed its 4 July 2025 auction on a relatively strong footing, defying pressure from weakening Dalian Commodity Exchange futures. Despite external headwinds, the session saw encouraging buyer participation, particularly for PP yarn and LLDPE film.
|
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 |
1666 |
1436 |
6900 |
$853 |
7030-7180 |
$869-887 |
86.2% |
|
BOPP |
100 |
0 |
7100 |
$878 |
- |
- |
0.0% |
|
PPBC |
350.65 |
100 |
6900 |
$853 |
7060-7250 |
$873-896 |
28.5% |
|
LL Film |
400 |
399 |
7000 |
$865 |
7010-7210 |
$866-891 |
99.8% |
|
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. |
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Auction platform: https://www.e-chnenergy.com
Auction time: Monday – Friday, 10 AM – 12 PM
Key takeaways:
The auction results demonstrated steady demand despite weaker futures performance, with Shenhua opting to keep most auction prices flat compared to earlier sessions. This pricing strategy, paired with moderated supply, helped sustain healthy buying interest heading into the weekend.
Market sources noted that the producer did not pursue immediate price hikes, likely reflecting broader caution amid macroeconomic uncertainties. Traders remain watchful of potential US trade actions, which could reshape regional buying behaviour in the near term.
A participant remarked, “We’re paying close attention to possible tariff escalations by the US. In contrast to PP, sentiment in the PE segment appears more optimistic due to expectations of reduced import arrivals tightening supply.”
Written: Kat Yun Yun
Edited: Rochelle Nguyen