Shenhua Auction: Bearish market mood weighs on PP and PE deals
The CNY 50/ton markdown for homo-PP failed to spark stronger buying interest, suggesting that price corrections alone are insufficient to offset growing demand-side concerns.
Shenhua Baotou Coal Chemical Co., China’s largest coal-based polyolefin producer, wrapped up its 07 July 2025 auction on a subdued note as market sentiment remained under pressure from external macroeconomic headwinds.
|
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 |
2080 |
1005 |
6850 |
$845 |
7010-7110 |
$865-878 |
48.3% |
|
PPBC |
332 |
78 |
6850 |
$845 |
7100-7200 |
$876-889 |
23.5% |
|
LL Film |
400 |
99 |
7000 |
$864 |
7000 |
$864 |
24.8% |
|
HD Film |
100 |
0 |
7700 |
$950 |
- |
- |
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 kicked off the week with lukewarm performance across key grades, reflecting deepening caution in the wake of falling futures on the Dalian Commodity Exchange. The CNY 50/ton markdown for homo-PP failed to spark stronger buying interest, suggesting that price corrections alone are insufficient to offset growing demand-side concerns.
“Similar adjustments in the broader spot market have narrowed the premium typically associated with Shenhua’s cargoes. Buyers are staying defensive as geopolitical and trade uncertainties cloud the near-term outlook,” commented a market source.
The continued absence of clarity surrounding potential US tariff actions has left players hesitant to build stock. Most market participants expect subdued activity to persist until more definitive guidance emerges, keeping procurement strategies firmly in wait-and-see mode.
Written: Kat Yun Yun
Edited: Rochelle Nguyen