CommoPlast | Article - Shenhua Auction: Lower PP offers lift participation, but market hesitancy lingers

Shenhua Baotou Coal Chemical Co., China’s largest coal-based polyolefins producer, concluded its auction on 09 July 2025 with moderate improvement in trading performance, driven by more competitive pricing and support from firmer futures.

Product	Auction Volume	Deal Volume	Auction Prices		Deal Prices		Deal %
Product	Auction Volume	Deal Volume	CNY/ton	USD/ton	CNY/ton	USD/ton	Deal %
*Combined and reported by CommoPlast*
PPH Yarn	1116	938	6600	$813	7020-7130	$865-879	84.1%
PPBC	432	66	6600	$813	6600-7100	$813-875	15.3%
LL Film	600	469	6950	$857	6970-7150	$859-881	78.2%
HD Film	100	0	7650	$943	-	-	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:

Trading sentiment on the Shenhua Auction Platform showed a visible uptick from the previous session, supported by a CNY 100/ton reduction in homo-PP auction prices and stronger performance on the Dalian Commodity Exchange. The revised pricing strategy helped push PPH Yarn deal volumes up by 24% day-on-day.

However, despite the improved participation, Shenhua continued to fall short of full sell-through, reflecting a cautious buying stance in the face of an uncertain short-term market outlook.

“Even with discounts in place, most buyers remain reluctant to commit to large volumes. The market still lacks a clear upside driver,” a trader familiar with the matter noted.

Written: Kat Yun Yun

Edited: Rochelle Nguyen

Country

China