Shenhua Auction: Discounted Offers Boost Buying Despite Market Caution
Players are closely watching whether Shenhua’s prices can hold firm above this level in the coming sessions, which could serve as a signal of potential stabilization
Shenhua Baotou Coal Chemical Co., China’s largest coal-based petrochemical producer, concluded its auction 05 August 2025, with the results for prime grades as follows:
|
Product |
Auction Volume |
Deal Volume |
Auction Prices |
Deal Prices |
Deal % |
||
|
CNY/ton |
USD/ton |
CNY/ton |
USD/ton |
||||
|
Combined and reported by CommoPlast |
|||||||
|
PPH Yarn |
1322 |
1104 |
6920 |
$853 |
6930-7090 |
$854-874 |
83.5% |
|
PPBC |
266 |
86 |
6600 |
$813 |
6650-7250 |
$820-894 |
32.3% |
|
LL Film |
450 |
450 |
6950 |
$857 |
7000-7140 |
$863-880 |
100.0% |
|
*Auction and Deal volumes are in tonnage *All USD equivalent prices only exclude the 13% value-added tax (VAT). They have not taken into account other costs that might incur in the selling process, i.e. import duty, customs clearances. |
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Auction platform: https://www.e-chnenergy.com
Auction time: Monday – Friday, 10 AM – 12 PM
Key takeaways:
PP and LLDPE futures reversed yesterday’s bearish statement on the Dalian Commodity Exchange (DCE) after trading within a narrow range during Tuesday morning’s session, before posting a modest rebound toward the close. The improved tone in the futures market, combined with more competitive auction pricing from Shenhua, helped to lift buying interest, particularly for PP Homo yarn and LLDPE film.
Deal volumes at Shenhua’s latest auction rose noticeably compared to the previous session. Market participants pointed to discounted starting prices — down by CNY30/ton for PP Homo yarn and CNY50/ton for LLDPE film — as a key factor behind the uptick in demand. These lower offers helped stimulate need-based purchases among cautious buyers.
However, traders noted that the final deal levels still remained within the recent market range, thus indicating the lack of upward momentum and the ongoing weakness in market confidence.
“The auction prices for both PP Homo yarn and LLDPE film continue to hover below the CNY7,000/ton mark ($863/ton, excluding VAT),” a trader explained. “This seems to be a psychological threshold for many buyers. As long as prices stay around this level, buying will likely remain on a need-only basis rather than driven by strong demand.”
Players are closely watching whether Shenhua’s prices can hold firm above this level in the coming sessions, which could serve as a signal of potential stabilization — or even gradual improvement — in underlying market sentiment.
For now, however, caution prevails. In the absence of clearer signs of demand recovery, many participants remain reluctant to build stock positions or take on significant risk.
Written by: Kat Yun Yun
Edited by: Farid Muzaffar