Shenhua Auction: Deal volumes decline amid waning market confidence

Shenhua Baotou Coal Chemical Co., China’s largest coal-based petrochemical producer, concluded its auction on 15 July 2025 with noticeably weaker participation across key PP and PE grades. The results for prime grades are as follows:

Auction platform: https://www.e-chnenergy.com  

Auction time: Monday – Friday, 10 AM – 12 PM 

Key takeaways:

Trading sentiment on the Shenhua Auction Platform deteriorated notably on Tuesday, as continued declines in Dalian Commodity Exchange futures further eroded confidence. Bidding activity was subdued, particularly in the absence of attractively priced cargoes that had spurred stronger sales a day earlier—highlighting the growing price sensitivity among buyers.

“As most customers remain pessimistic about the near-term outlook, today’s softer futures market has only deepened the cautious stance,” a local trader commented. “Even traders who were actively buying yesterday have stepped back. 

Industry participants pointed to the lack of fundamental support on either end of the value chain—no meaningful shift in upstream costs nor any substantial improvement in downstream demand. This has left many buyers hesitant, preferring to defer purchases until clearer market direction emerges.

Unless a catalyst triggers renewed buying interest, Shenhua’s auction platform may continue to see tepid participation in the days ahead.

Written: Kat Yun Yun 

Edited: Rochelle Nguyen