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02 August 2024 - Shenhua's coal-based PP and PE Auction ResultsThe Shenhua Auction Platform concluded the week with a notable dip in transactions, reflecting the volatility that marked the trading sessions. Despite a strong sales performance in the previous session, Shenhua’s decision to raise auction prices by CNY 40-50/ton backfired, leading to a sharp decline in buyer activity. |
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Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 02 August 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 |
1750 |
1179 |
7530 |
$922 |
7590-7700 |
$929-942 |
67.4% |
|
PP Thinwall |
- |
- |
- |
- |
- |
- |
- |
|
PPBC |
300 |
150 |
7450 |
$912 |
7450-7900 |
$912-967 |
50.0% |
|
LLDPE |
1000 |
609 |
8090 |
$990 |
8190-8270 |
$1002-1012 |
60.9% |
|
LDPE heavy duty |
- |
- |
- |
- |
- |
- |
- |
|
HDPE |
100 |
0 |
8050 |
$985 |
- |
- |
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 the week with a notable dip in transactions, reflecting the volatility that marked the trading sessions. Despite a strong sales performance in the previous session, Shenhua’s decision to raise auction prices by CNY 40-50/ton backfired, leading to a sharp decline in buyer activity.
The swift market reaction to the price hike underscores the current market sensitivity. Industry insiders suggest that such cautious behavior among buyers could hinder market progress in the coming week.
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
