Shenhua Auction: Futures rebound lifts deals, but sentiment stays cautious
Shenhua’s auction delivered stronger results, with homo-PP yarn and BOPP achieving high sell-through rates, while LLDPE film once again cleared nearly in full.
Shenhua Baotou Coal Chemical Co., China’s largest coal-based petrochemical producer, concluded its 24 September auction with markedly improved results across key grades, as converters returned for need-based purchases.
|
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 |
1489 |
1313 |
6650 |
$827 |
6650-6820 |
$827-848 |
88.2% |
|
BOPP |
300 |
273 |
6650 |
$827 |
6650 |
$827 |
91.0% |
|
PPBC Inj |
400 |
12 |
6400 |
$795 |
6400 |
$795 |
3.0% |
|
LL Film |
450 |
447 |
6850 |
$851 |
6920-7070 |
$860-879 |
99.3% |
|
HD Film |
100 |
0 |
7050 |
$876 |
- |
- |
0.0% |
|
*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. |
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Auction platform:https://www.e-chnenergy.com
Auction time:Monday – Friday, 10 AM – 12 PM
Key takeaways:
Shenhua’s auction delivered stronger results, with homo-PP yarn and BOPP achieving high sell-through rates, while LLDPE film once again cleared nearly in full. By contrast, demand for block copolymer and HDPE film was negligible, underscoring persistent weakness in secondary PP grades.
The firmer outcome coincided with a rebound in PP and LLDPE futures on the Dalian Commodity Exchange, which helped lift buying interest as converters returned for essential volumes after staying cautious earlier this week. Market participants, however, stressed that the improvement stemmed more from technical recovery than a change in fundamentals.
“It is just a normal futures correction, and coincidentally, some customers who stayed on the sidelines in recent days returned to the market,” a local trader said.
With the Golden Week holiday fast approaching, sentiment remains subdued. Buyers continue to prioritise immediate needs over stock-building, leaving little confidence that today’s firmer showing signals a sustainable turnaround.
Written: Kat Yun Yun
Edited: Aiman Haikal