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07 August 2024 - Shenhua's coal-based PP and PE Auction ResultsShenhua concluded its third auction session of the week with mixed results. The coal-based producer managed to attract satisfactory buying interest for homo-PP cargoes after trimming the price by CNY 20/ton. However, LLDPE film did not share the same success, reflecting divergent market dynamics. |
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Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 07 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 |
1400 |
1183 |
7490 |
$923 |
7490-7680 |
$923-947 |
84.5% |
|
PP Thinwall |
- |
- |
- |
- |
- |
- |
- |
|
PPBC |
150 |
111 |
7600 |
$937 |
7600-7800 |
$937-961 |
74.0% |
|
LLDPE |
1000 |
450 |
8050 |
$992 |
8160-8240 |
$1006-1016 |
45.0% |
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LDPE heavy duty |
- |
- |
- |
- |
- |
- |
- |
|
HDPE |
100 |
0 |
8050 |
$992 |
- |
- |
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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Shenhua concluded its third auction session of the week with mixed results. The coal-based producer managed to attract satisfactory buying interest for homo-PP cargoes after trimming the price by CNY 20/ton. However, LLDPE film did not share the same success, reflecting divergent market dynamics.
The ongoing decline in futures contracts on the Dalian Commodity Exchange has made buyers increasingly cautious, further dampening trading sentiment. This cautious approach by buyers highlights the prevailing uncertainty in the market, which continues to face headwinds from both supply and demand perspectives.
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
