Shenhua Auction: Discounts trigger moderate uptake amid cautious sentiment
Trading activity at Shenhua’s auction improved modestly following a subdued session the previous day, supported by lower starting offers.
Shenhua Baotou Coal Chemical Co., China’s largest coal-based petrochemical producer, concluded its auction on 02 September 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 |
1270 |
1070 |
6650 |
$824 |
6800-7040 |
$843-873 |
84.3% |
|
PPH Inj |
50 |
0 |
6650 |
$824 |
- |
- |
0.0% |
|
PPBC Inj |
334 |
283 |
6850 |
$849 |
6850-7050 |
$849-874 |
84.7% |
|
LL Film |
350 |
350 |
6930 |
$859 |
6980-7130 |
$865-884 |
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. |
|||||||
Auction platform: https://www.e-chnenergy.com
Auction time: Monday – Friday, 10 AM – 12 PM
Key takeaways:
Trading activity at Shenhua’s auction improved modestly following a subdued session the previous day, supported by lower starting offers. Additionally, rebounded future trading also supported the overall sentiment.
Auction prices were lowered by CNY50–70/ton day-on-day, prompting selective, need-based purchases. Homo-PP yarn and PPBC recorded substantial uptake at 84.3% and 84.7%, respectively, while LLDPE film achieved a full sell-out.
“Demand only improves when discounted offers are available, which shows that prices still face resistance to move higher,” a local participant commented. “Even with recent coal production restrictions from 1–5 September for the Victory Day parade, coal-based cargoes have yet to show any significant price increase. We remain cautious for now.”
Overall, the results highlight a moderate pick-up in activity driven by price reductions rather than speculative buying. Market participants remain focused on immediate production requirements, with sentiment likely to stay measured as both futures trends and September supply developments continue to guide market expectations.
Written: Kat Yun Yun
Edited: Aiman Haikal