Shenhua Auction: Futures rebound, but broader demand yet to firm

Shenhua Baotou Coal Chemical Co., China’s largest coal-based petrochemical producer, concluded its auction 29 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:

Trading activities on the Shenhua Auction Platform registered a notable improvement in deal volumes today, aided primarily by a modest recovery in futures contracts on the Dalian Commodity Exchange.

According to market sources, firmer futures pricing during morning trading helped underpin confidence, prompting some converters to re-enter the market. Buyers who had postponed purchases earlier in the week took the opportunity to replenish inventories, supporting a stronger sell-through rates.

Nonetheless, the uptick in transactions did little to dispel the overall lackluster sentiment in the domestic market. A trader reported, “Although the CNY 50/ton discount Shenhua offered on the LLDPE cargoes was of the same magnitude compared to the domestic spot market, the lower starting price point made these coal-based parcels way more attractive.”

While today’s result may point to the early formation of a tentative price floor, most players remain hesitant to call it a turning point. A sustained recovery, they say, will require not only firmer futures support, but also a seasonal lift in demand and renewed strength from downstream industries.

Written: Kat Yun Yun 

Edited: Farid Muzaffar