Shenhua Auction: Prices steady as need-based buying continues

Shenhua Baotou Coal Chemical Co., China’s largest coal-based petrochemical producer, concluded its 25 September auction with steady results, as converters continued to purchase only essential volumes ahead of the Golden Week holiday.

Auction platform: https://www.e-chnenergy.com  

Auction time: Monday – Friday, 10 AM – 12 PM 

Key takeaways

Shenhua’s auction reflected the stabilisation seen in futures, as both PP and LLDPE contracts on the Dalian Commodity Exchange extended their rebound during the morning session.

LLDPE film once again cleared in full, underscoring comparatively firmer demand in packaging and agricultural sectors. PP yarn achieved a clearance rate of over 70%, though block copolymer sales remained limited.

Deal prices largely tracked prevailing market levels, suggesting buyers were focused on maintaining operations rather than replenishing stocks. Activity was described as need-based, with sentiment constrained by the approaching holiday and concerns over post-holiday inventory digestion.

“Given that no one expected a strong trend before the holiday, it is already positive that deals are being concluded,” a local player commented. “The key now is whether prices can stabilise in the coming days rather than face further declines. Post-holiday confidence remains limited, as much will depend on how inventories are digested once the market reopens.”

Written: Kat Yun Yun 

Edited: Aiman Haikal