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23 July 2024 - Shenhua's coal-based PP and PE Auction ResultsA mixed development was observed on the Shenhua Auction Platform on the second trading day of the week, with homo-PP achieving a strong number of deals while LLDPE film continued to lag. The significant discrepancy in transaction volumes between the two grades mirrors similar trading results on the Dalian Commodity Exchange. |
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Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 23 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 |
2200 |
2150 |
7500 |
$913 |
7510-7710 |
$914-939 |
97.7% |
|
PP Thinwall |
50 |
33 |
7650 |
$931 |
7650 |
$931 |
66.0% |
|
PPBC |
550 |
180 |
7500 |
$913 |
7500-8020 |
$913-976 |
32.7% |
|
LLDPE |
1150 |
497 |
8150 |
$992 |
8160-8340 |
$993-1015 |
43.2% |
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LDPE heavy duty |
- |
- |
- |
- |
- |
- |
- |
|
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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A mixed development was observed on the Shenhua Auction Platform on the second trading day of the week, with homo-PP achieving a strong number of deals while LLDPE film continued to lag. The significant discrepancy in transaction volumes between the two grades mirrors similar trading results on the Dalian Commodity Exchange.
Market participants anticipate the PP sector to maintain stronger buying interest than PE in the coming weeks. Concurrently, buyers are closely monitoring the extent of price cuts in the PE sector, aiming to identify bottom price levels and secure optimal deals.
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
