Shenhua Auction: Trading sentiment improved following price adjustments

Shenhua Baotou Coal Chemical Co., China’s largest coal-based petrochemical producer, concluded its auction 03 September 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:

Trading activity on the Shenhua Auction Platform rebounded sharply from the previous session, with sell-through rates for key grades – notably homo-PP yarn and LLDPE – climbing above 90%, even as futures prices continued to weaken.

PP sales regained momentum after Shenhua trimmed starting prices by CNY 50/ton from the last auction. The adjustment drew renewed buying interest, following an 84.3% deal ratio previously. However, abundant domestic supply remains a persistent drag on overall PP pricing.

LLDPE, by contrast, held firm at opening levels and ultimately achieved deals at CNY 20–30/ton above the prior session, pointing to comparatively stronger sentiment. The emergence of seasonal demand is lending some support to LLDPE, though most market participants remain cautious about the sustainability of any recovery.

Looking ahead, the outlook appears divided. PP is expected to continue to face downward pressure from rising supply, while LLDPE stands to benefit from firmer seasonal demand and tighter import availability. Nonetheless, across both grades, buying remains largely need-based, underscoring the market’s reluctance to commit beyond immediate procurement requirements.

Written: Kat Yun Yun 

Edited: Farid Muzaffar