Shenhua Auction: Sales results faltered as futures slump weighs on sentiment

Shenhua Baotou Coal Chemical Co., China’s largest coal-based petrochemical producer, concluded its auction 28 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 ended the first auction session of the week on a notably weaker note as a sharp downturn in futures market cast a bearish pall over market sentiment. The lacklustre outcome reflects the growing buyer caution ahead of the month-end.

A collapse in coal futures precipitated a steep fall in PP and LLDPE contracts on the Dalian Commodity Exchange (DCE), significantly undermining overall purchasing confidence. Further eroding buying interest, Shenhua opted to keep its auction prices unchanged from the previous week. In some instances, previously discounted LLDPE cargoes were not offered at all.

“As PP and PE fundamentals remain weak, with no discernible demand drivers on the horizon, market direction will likely continue to track the broader macro environment,” a local trader said. “We believe coal futures will be the key determinant in the near term. The sharp drop today has already prompted many customers to revert to a wait-and-see approach.”

The disappointing auction result marks a reversal from the relatively robust performance seen late last week, underscoring the volatile influence of futures markets on sentiment. With the end of the month approaching, buyers are expected to stay sidelined, closely watching futures developments for clearer signals before re-entering the market.

Written: Kat Yun Yun 

Edited: Aiman Haikal