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03 July 2024 - Shenhua's coal-based PP and PE Auction ResultsThe coal-based producer implemented a CNY 50/ton increase in auction prices for both PP and PE cargoes. Despite this hike, buyers found these parcels more attractive than spot materials. |
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Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 03 July 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 |
1516 |
1506 |
7600 |
$925 |
7660-7870 |
$932-958 |
99.3% |
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PP Thinwall |
100 |
100 |
7700 |
$937 |
7720-7730 |
$940-941 |
100.0% |
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PPBC |
300 |
300 |
7850 |
$956 |
7900-8280 |
$962-1008 |
100.0% |
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LLDPE |
900 |
900 |
8350 |
$1016 |
8360-8530 |
$1018-1038 |
100.0% |
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LDPE heavy duty |
- |
- |
- |
- |
- |
- |
- |
|
HDPE |
100 |
0 |
8450 |
$1029 |
- |
- |
0.0% |
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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 concluded its third session of the week with robust results, supported by the resilient futures contracts on the Dalian Commodity Exchange. The coal-based producer implemented a CNY 50/ton increase in auction prices for both PP and PE cargoes. Despite this hike, buyers found these parcels more attractive than spot materials.
Market participants anticipate that the current bullish sentiment will continue in the coming days, driven by the strong energy complex and optimism regarding the economic outlook. However, buyers may not be ready for aggressive stock-building at this time. Instead, a continued hand-to-mouth replenishment strategy is expected.
Background:
Shenhua Baotou Coal Chemical Co, the largest coal-based polyolefins producer in China, operates through four subsidiaries: 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 boasts an annual production capacity of 2.65 million tons of PP, 750,000 tons of HDPE/LLDPE, and 570,000 tons of LDPE.
Active in spot trading, Shenhua Baotou also conducts daily auctions for its cargoes from 10 AM - 12 PM on its dedicated online platform, available at https://www.e-chnenergy.com.
Written by: Kat Yun Yun
Edited by: Rochelle Nguyen
Country
China
