Shenhua Auction: A brief lift amid lingering caution

Shenhua Baotou Coal Chemical Co., China’s largest coal-based petrochemical producer, concluded its auction 23 July 2025, with the results for prime grades as follows:

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

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

Key takeaways:

Shenhua's most recent auction of homo-PP yarn and LLDPE saw a noticeable uptick in deal volumes, reflecting a temporary boost in early market confidence. Traders noted firmer sentiment during the morning session, though many questioned whether the improvement marked a genuine shift or merely a short-lived response to the futures market dynamics.

Early buying activity was notably stronger, spurred by restocking activities by traders. However, the initial enthusiasm began to fade as futures contracts for both PP and LLDPE on the Dalian Commodity Exchange (DCE) started to lose ground before midday, curbing further momentum.

“Market sentiment remains fragile. Most of the buying was likely driven by immediate needs rather than any structural improvement in demand. We're staying cautious and watching how this develops.”

While today’s auction outcome offered a temporary lift to market sentiment, traders widely agree that a sustained rebound will require more robust futures performance and tangible recovery in downstream sectors before a definitive pricing trend can be established.

Written: Kat Yun Yun 

Edited: Aiman Haikal