Shenhua Auction: Sell-through rates for PP eroded on price hikes
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%,
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 % |
||
|
CNY/ton |
USD/ton |
CNY/ton |
USD/ton |
||||
|
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. |
|||||||
Auction platform: https://www.e-chnenergy.com
Auction time: Monday – Friday, 10 AM – 12 PM
Key takeaways:
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.
Written: Kat Yun Yun
Edited: Rochelle Nguyen