CommoPlast Article

Shenhua Baotou Coal Chemical Co., China’s largest coal-based polyolefins producer, concluded its auction on 27 June 2025 with mixed results across the product slate. While limited PE volumes were fully absorbed, PP deals weakened compared to the previous session as price sensitivity among buyers persisted.

Product	Auction Volume	Deal Volume	Auction Prices		Deal Prices		Deal %
Product	Auction Volume	Deal Volume	CNY/ton	USD/ton	CNY/ton	USD/ton	Deal %
*Combined and reported by CommoPlast*
PPH Yarn	1350	1000	7000	$865	7050-7230	$871-894	74.1%
BOPP	450	0	7130	$881	-	-	0.0%
PPBC Inj	463.8	359	6680	$826	6680-6700	$826-828	77.4%
HD Film	200	200	7700	$952	7710-7720	$953-954	100.0%
LL Film	100	100	7240	$895	7240	$895	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.

Shenhua's auction results revealed buyers’ selective appetite under a market clouded by uncertainty. The sell-through rate for coal-based homo-PP fell to just above 77%, retreating from earlier levels after the producer raised its auction prices by CNY 50/ton.

“Firmer auction levels against discounted spot market cargoes turned away many participants,” a trader told CommoPlast. “The market remains too fragile to absorb upward price pressure, and buyers are hesitant to commit unless absolutely necessary.”

Meanwhile, PE products – notably HDPE and LLDPE film grades – saw full allocation, albeit on modest volumes. Market players attributed this to replenishment needs rather than any bullish sentiment, reinforcing the notion that buying interest remains highly transactional and defensive.

Shenhua Auction: Sell-through rates for PP eroded on price hikes