Shenhua Auction: Competitive pricing boosted sell-through rates
Shenhua concluded the final auction session of the week on a firm footing, buoyed by stable auction pricing and rising support from Dalian Commodity Exchange futures.
Shenhua Baotou Coal Chemical Co., China’s largest coal-based petrochemical producer, concluded its auction on 18 July 2025 with robust sales, with the auction results being summarised as follows:
|
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 |
1900 |
1822 |
6920 |
$853 |
6940-7080 |
$855-873 |
95.9% |
|
PPH Inj |
332 |
66 |
6650 |
$820 |
6720-6730 |
$828-829 |
19.9% |
|
PPBC |
50 |
0 |
7100 |
$875 |
- |
- |
0.0% |
|
LL Film |
500 |
500 |
6920 |
$853 |
6960-7090 |
$858-874 |
100.0% |
|
HD Film |
150 |
0 |
7500 |
$924 |
- |
- |
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:
Shenhua concluded the final auction session of the week on a firm footing, buoyed by stable auction pricing and rising support from Dalian Commodity Exchange futures. Notably, LLDPE film sold out entirely, while deal volumes for homo-PP surged by more than 50% from the previous session, reaching nearly 96%.
The coal-based producer kept auction prices steady despite a clear uptick in both futures and spot markets, luring buyers to secure raw material for the immediate needs directly from the platform. This pricing strategy, perceived as attractive under current market conditions, played a key role in driving procurement decisions.
“The development clearly highlights the rising price sensitivity among Chinese buyers. Even a slight price increment could suppress purchasing interest,” a market source observed.
Discussions have emerged over whether Shenhua can sustain this strong buying momentum in upcoming sessions. Much will depend on its ability to balance competitiveness with the broader market trend. As local and regional suppliers inch up offers, Shenhua’s pricing approach may be the decisive factor in maintaining its edge.
Written: Kat Yun Yun
Edited: Rochelle Nguyen