Shenhua Auction: Softer deal prices failed to revive strong buying interest

Shenhua Baotou Coal Chemical Co., China’s largest coal-based petrochemical producer, concluded its auction 04 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 at Shenhua’s auction was subdued, reflecting the weak tone on the Dalian Commodity Exchange. The softer futures backdrop weighed on physical market sentiment, contributing to lower transaction prices for both PP and LLDPE relative to the previous day.

PP block copolymer (PPBC) was the only grade maintaining steady prices, supported by limited, need-based buying. By contrast, uptake for homo-PP yarn and LLDPE film was notably muted, with deals concluded at CNY20–140/ton and approximately CNY30/ton lower than Tuesday’s levels, respectively.

“After the military parade, sentiment softened, and even need-based purchases were highly selective on price,” a local trader said. “We do not expect any firm rebound this week, and near-term prospects remain weak.”

Overall, the results indicate cautious market behaviour as September trading gets underway. While selective buying continues for certain grades, broad speculative demand remains absent, and market participants are expected to monitor both futures movements and ongoing supply developments before committing to new positions.

Written: Kat Yun Yun 

Edited: Aiman Haikal