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24 May 2024 - Shenhua's coal-based PP and PE Auction ResultsAfter a disappointing trading session yesterday, all three traded commodities on the Shenhua Auction Platform came out stronger today with deals achieving above 94%. |
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Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 24 May 2024. The following table showed the details of the auction results for prime grade only:
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Product |
Auction Volume |
Deal Volume |
Auction Prices |
Deal Prices |
Deal % |
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CNY/ton |
USD/ton |
CNY/ton |
USD/ton |
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Combined and reported by CommoPlast |
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Homo-PP |
1550 |
1461 |
7500 |
$915 |
7520-7750 |
$918-946 |
94.3% |
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PP Fiber |
- |
- |
- |
- |
- |
- |
- |
|
PPBC |
600 |
600 |
7700 |
$940 |
7720-8100 |
$942-989 |
100.0% |
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LLDPE |
950 |
910 |
8390 |
$1024 |
8390-8500 |
$1024-1038 |
95.8% |
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LDPE heavy duty |
- |
- |
- |
- |
- |
- |
- |
|
HDPE |
- |
- |
- |
- |
- |
- |
- |
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*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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After a disappointing trading session yesterday, all three traded commodities on the Shenhua Auction Platform came out stronger today with deals achieving above 94%. This improvement was driven by discounts on homo-PP and LLDPE, which were reduced by CNY50/ton and CNY60/ton respectively.
Despite the stronger performance, buyer sentiment remains cautious. Purchases were predominantly made on discounted cargoes after negotiations.
"We are really hoping for further price reductions next week so we can average down our overall cost for replenishing cargoes," one buyer expressed.
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
