CommoPlast Article

Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 15 July 2024. The following table showed the details of the auction results for prime grade only:

Product	Auction Volume	Deal Volume	Auction Prices		Deal Prices		Deal %
Product	Auction Volume	Deal Volume	CNY/ton	USD/ton	CNY/ton	USD/ton	Deal %
*Combined and reported by CommoPlast*
Homo-PP	1450	1373	7600	$926	7660-7760	$934-946	94.7%
PP Thinwall	-	-	-	-	-	-	-
PPBC	542	262	7600	$926	7850-8150	$957-993	48.3%
LLDPE	600	566	8100	$987	8100-8390	$987-1023	94.3%
LDPE heavy duty	-	-	-	-	-	-	-
HDPE	-	-	-	-	-	-	-
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.

Shenhua successfully concluded the first auction session of the week, achieving a satisfactory number of transactions despite a decline in futures contracts on the Dalian Commodity Exchange. Market sources attribute the bullish development to reduced auction volumes combined with attractive pricing.

Currently, auction prices for both coal-based homo-PP and LLDPE film are approximately CNY 100/ton below the spot market prices, which has incentivized customers to make purchases.

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.

15 July 2024 - Shenhua's coal-based PP and PE Auction Results