Shenhua Auction: Firmer auction prices meet immediate buyer resistance
Despite some restocking activity earlier this week, most buyers remain on the sidelines, reluctant to make further commitments until clearer direction emerges
Shenhua Baotou Coal Chemical Co., China’s largest coal-based petrochemical producer, concluded its online auction on 7 August 2025 with mixed results, as firmer price indications dampened buying interest across several key grades.
|
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 |
899 |
517 |
6960 |
$858 |
7000-7080 |
$863-873 |
57.5% |
|
BOPP |
200 |
50 |
7000 |
$863 |
7000 |
$863 |
25.0% |
|
PPBC |
239 |
0 |
7070 |
$871 |
- |
- |
0.0% |
|
LL Film |
450 |
200 |
7050 |
$869 |
7170 |
$884 |
44.4% |
|
*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. |
|||||||
Auction platform: https://www.e-chnenergy.com
Auction time: Monday – Friday, 10 AM – 12 PM
Key takeaways:
With the recent rally on the Dalian Commodity Exchange showing signs of fatigue, Shenhua’s decision to lift auction prices—by CNY 80/ton for homo-PP and CNY 30–40/ton for LLDPE—was met with immediate buyer resistance.
“In the past two days, many buyers had already completed their restocking. Today, they simply stepped back and showed no interest in accepting higher prices,” a trader said. “Moreover, most local producers kept their offers stable this morning, making Shenhua’s firmer levels appear uncompetitive.”
The auction results reflect ongoing fragility in downstream demand. Despite some restocking activity earlier this week, most buyers remain on the sidelines, reluctant to make further commitments until clearer direction emerges from both the futures and physical markets.
Written: Kat Yun Yun
Edited: Aiman Haikal