Shenhua Auction: Limited cargoes on final trading day, demand remains subdued
With the final trading day of both the week and the month, many buyers preferred to remain on the sidelines, awaiting fresh September offers before committing to new purchases.
Shenhua Baotou Coal Chemical Co., China’s largest coal-based petrochemical producer, concluded its auction 29 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 |
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|
PPH Yarn |
189 |
33 |
6940 |
$861 |
6940 |
$861 |
17.4% |
|
*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. |
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Auction platform: https://www.e-chnenergy.com
Auction time: Monday – Friday, 10 AM – 12 PM
Key takeaways:
Trading activity on Shenhua Auction Platform remained subdued on Friday, despite a smaller volume of cargoes on offer compared with recent sessions. With the final trading day of both the week and the month, many buyers preferred to remain on the sidelines, awaiting fresh September offers before committing to new purchases.
Futures for PP and LLDPE on the Dalian Commodity Exchange extended their weak, range-bound performance during the morning session, further dampening sentiment in the physical market.
Auction volumes were limited, with only small parcels of PP homo yarn offered. Yet, the pricing failed to generate much competition, resulting in the lack of participation. In contrast to the previous session, when PP homo yarn achieved a 91.9% deal ratio and trades were concluded at CNY10–30/ton below earlier levels, this session saw no further discounts and left most cargoes unsold.
The performance underlined the relative softness of PP compared with LLDPE, where available cargoes were fully sold. “The auction highlighted the relative weakness of PP compared to LLDPE,” one trader said. “While LLDPE cargoes for the month were sold out, some PP homo yarn remained unsold, reflecting softer demand. We expect the market to stay cautious heading into next week.”
The outcome reinforced expectations that participants will continue to adopt a wait-and-see approach until clearer pricing signals emerge with the release of September supply.
Written: Kat Yun Yun
Edited: Farid Muzaffar