Shenhua Auction: Deal volumes ease as trade sentiment stalls

Shenhua Baotou Coal Chemical Co., China’s largest coal-based petrochemical producer, concluded its auction 30 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:

As July draws to a close, deal volumes on the Shenhua Auction Platform declined notably compared to the previous session. Despite achieving a full clearance for LLDPE film, trading activity for coal-based homo-PP weakened, even as futures prices showed signs of recovery.

The latest auction results underscore the prevailing demand divergence, with buyers showing little appetite for stockpiling ahead of August. Market sentiment softened further as buyers shifted into a wait-and-see mode.

“It’s typical for buyers to restock earlier in the week, so today’s subdued interest isn’t surprising,” a local trader commented. “There’s a general reluctance to commit until August offers are in, and ongoing uncertainty surrounding US–China relations isn’t helping.” Two days of bilateral negotiations in Sweden concluded yesterday without any tangible progress, adding to the caution.

With limited new catalysts and macroeconomic headwinds still dominating sentiment, the near-term outlook remains muted. Market participants are now closely watching the outcome of today’s Chinese Communist Party politburo meeting, which may set the tone for upcoming policy direction. Some analysts anticipate a focus on anti-involution policies, others expect increased stimulus for demographic incentives, including potential child subsidies that could reach up to CNY90 billion.

Written: Kat Yun Yun 

Edited: Farid Muzaffar