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06 June 2024 - Shenhua's coal-based PP and PE Auction ResultsFailure to secure a satisfactory number of transactions on the previous day has encouraged Shenhua to review and adjust pricing strategies in order to facilitate transactions ahead of the long weekend holiday. |
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Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 06 June 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 |
1816 |
1431 |
7450 |
$909 |
7490-7840 |
$914-957 |
78.8% |
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PP Thinwall |
50 |
50 |
7800 |
$952 |
7800 |
$952 |
100.0% |
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PPBC |
280 |
80 |
7700 |
$940 |
7740-7750 |
$945-946 |
28.6% |
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LLDPE |
1200 |
1131 |
8300 |
$1013 |
8300-8450 |
$1013-1031 |
94.3% |
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LDPE heavy duty |
- |
- |
- |
- |
- |
- |
- |
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HDPE |
250 |
192 |
8300 |
$1013 |
8300-8500 |
$1013-1038 |
76.8% |
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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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Failure to secure a satisfactory number of transactions on the previous day has encouraged Shenhua to review and adjust pricing strategies in order to facilitate transactions ahead of the long weekend holiday. The auction prices for coal-based LLDPE film were CNY100/ton lower than the previous session while others were unchanged.
“There are still some reservations among buyers. Unless the futures market rebounded sharply, we expect Shenhua to further soften their stance on prices before the weekend” a trader commented.
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
