Shenhua Auction: Softer futures weighed on Shenhua’s end-July PP and PE auction performance

Shenhua Baotou Coal Chemical Co., China’s largest coal-based petrochemical producer, concluded its auction 31 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 July on a subdued note as weakening futures markets suppressed buyer participation. Although the total auction volume was moderately reduced in line with typical end-of-month patterns, overall transaction performance was underwhelming.

In the PP segment, homo-PP yarn was offered at a marginal discount of CNY10/ton from the previous day's listed level, attracting some need-based procurement. Still, deals were finalised at CNY15–110/ton below initial asking prices, reflecting the seller’s increased pricing flexibility amid a significant decline in upstream coking coal costs.

Meanwhile, other grades—including block copolymer PP and LLDPE film—failed to attract buying interest, despite the relatively small quantities offered. These products concluded with zero sales, underscoring the broader market's cautious stance.

Market participants largely remained on the sidelines, awaiting clearer signals before re-entering the market. With sentiment still fragile and market fundamentals offering little immediate support, the outlook remains bearish, and further downward adjustments are expected heading into early August.

Written: Kat Yun Yun 

Edited: Aiman Haikal