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28 May 2024 - Shenhua's coal-based PP and PE Auction ResultsIt was evident that local buyers eagerly rushed to place bids, seizing the opportunity presented by the stable auction prices amid a backdrop of producers maintaining a strong stance in the spot market. |
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Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 28 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 |
1750 |
1750 |
7500 |
$915 |
7530-7860 |
$919-959 |
100.0% |
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PP Fiber |
- |
- |
- |
- |
- |
- |
- |
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PPBC |
700 |
700 |
7780 |
$950 |
7860-8140 |
$959-994 |
100.0% |
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LLDPE |
1100 |
1099 |
8400 |
$1025 |
8400-8560 |
$1025-1045 |
99.9% |
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LDPE heavy duty |
- |
- |
- |
- |
- |
- |
- |
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HDPE |
200 |
200 |
8350 |
$1019 |
8370-8380 |
$1022-1023 |
100.0% |
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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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The Shenhua Auction Platform had a remarkable week, boasting impressive performances in various polymers, albeit with a slight hiccup in LLDPE, which fell short by just 0.1% in deals concluded. Auction prices for PP block copolymer and HDPE were higher, yet this did not deter the conclusion of deals.
"There was a brief moment of doubt when the Dalian Commodity Exchange faltered towards the session's end, hinting at potential discounts on the auction platform," remarked a Chinese participant. "But we were proven wrong. Many placed bids, encouraged by the stability of homo-PP and LLDPE auction prices compared to the spot market, where local producers were holding firm."
It was evident that local buyers eagerly rushed to place bids, seizing the opportunity presented by the stable auction prices amid a backdrop of producers maintaining a strong stance in the spot market.
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
Country
China
