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10 July 2024 - Shenhua's coal-based PP and PE Auction ResultsShenhua’s decision to maintain stable auction prices has backfired, as the continued decline in futures markets and falling crude oil prices have severely dampened buying interest. |
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Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 10 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 |
1616 |
403 |
7550 |
$918 |
7650-7720 |
$930-938 |
24.9% |
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PP Thinwall |
100 |
0 |
7700 |
$936 |
- |
- |
0.0% |
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PPBC |
597 |
63 |
7400 |
$900 |
7800-7850 |
$948-954 |
10.6% |
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LLDPE |
600 |
336 |
8250 |
$1003 |
8250-8400 |
$1003-1021 |
56.0% |
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LDPE heavy duty |
- |
- |
- |
- |
- |
- |
- |
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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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Shenhua’s decision to maintain stable auction prices has backfired, as the continued decline in futures markets and falling crude oil prices have severely dampened buying interest. The coal-based producer experienced particularly disappointing auction results for homo-PP cargoes.
Chinese customers are generally anticipating further price reductions in the spot market, further discouraging engagement in auctions for coal-based cargoes at this time.
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
