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24 July 2024 - Shenhua's coal-based PP and PE Auction ResultsThe auction result for coal-based LLDPE film plummeted this morning, with zero sales reported for the first time this year due to easing supply pressures and a weaker futures market. |
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Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 24 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 |
2000 |
1480 |
7500 |
$912 |
7500-7670 |
$912-932 |
74.0% |
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PP Thinwall |
- |
- |
- |
- |
- |
- |
- |
|
PPBC |
400 |
233 |
7850 |
$954 |
7870-7950 |
$957-966 |
58.3% |
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LLDPE |
750 |
0 |
8150 |
$991 |
- |
- |
0.0% |
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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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The auction result for coal-based LLDPE film plummeted this morning, with zero sales reported for the first time this year due to easing supply pressures and a weaker futures market. Market participants noted that the recent supply tightness from reduced import arrivals and plant maintenance has now shifted to a glut, exacerbating the downturn.
Meanwhile, homo-PP secured 75% transacted volume at CNY10-40/ton below the previous day, the overall sentiment remains bearish, with cautious market participants refraining from new cargo purchases.
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
