|
|
26 March 2024 - Shenhua's coal-based PP and PE Auction ResultsMany traders were puzzled by the market response but anticipated the favourable outcome was due to a sizable number of buyers returning to the market today as the auctioned price was still about CNY50/ton lower than local prices. |
|
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 26 March 2024. The following table showed the details of the auction results for prime grade only:
|
Product |
Auction Volume |
Deal Volume |
Auction Prices |
Deal Prices |
Deal % |
||
|
CNY/ton |
USD/ton |
CNY/ton |
USD/ton |
||||
|
Combined and reported by CommoPlast |
|||||||
|
Homo-PP |
2000 |
2000 |
7280 |
$892 |
7320-7500 |
$897-919 |
100.0% |
|
PP Fiber |
- |
- |
- |
- |
- |
- |
- |
|
PPBC |
558 |
558 |
7400 |
$907 |
7400-7520 |
$907-922 |
100.0% |
|
LLDPE |
1450 |
1350 |
8050 |
$987 |
8060-8220 |
$988-1008 |
93.1% |
|
LDPE heavy duty |
- |
- |
- |
- |
- |
- |
- |
|
HDPE |
- |
- |
- |
- |
- |
- |
- |
|
*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. |
|||||||
The Shenhua Auction Platform ended the session with remarkable results compared to Monday. All three grades were auctioned at higher volume and prices as homo-PP gained CNY30/ton while LLDPE added CNY10/ton, yet the coal-based producer was still able to conclude 100% and 93% deals.
Many traders were puzzled by the market response but anticipated the favourable outcome was due to a sizable number of buyers returning to the market today as the auctioned price was still about CNY50/ton lower than local prices.
Background:
Shenhua Baotou Coal Chemical Co is currently the largest coal-based polyolefins producer in China, operates under four subsidiaries, namely: Shenhua Xinjiang Coal-based New Materials Project, Shenhua Yulin Energy Co Ltd, Shenhua Baotou Coal Chemical Co Ltd and Shenhua Ningxia Coal Industry Group (Ningmei).
The company has an annual capacity of 2.65 million tons/year of PP, 750,000 tons/year of HDPE/LLDPE and 570,000 tons/year of LDPE.
Shenhua Baotou Coal Chemical Co is active in spot trading, while also conducting the daily auction for its cargoes daily between 10AM to 12PM on the official online platform that specifically designed for this purpose: https://www.e-chnenergy.com
