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12 August 2024 - Shenhua's coal-based PP and PE Auction ResultsDespite this tepid demand, Shenhua maintained a firm stance on auction prices, raising homo-PP by CNY 10/ton while keeping LLDPE prices unchanged. This move highlights producers' unwillingness to reduce prices further, despite the apparent lack of buyer enthusiasm. |
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Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 12 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 |
1450 |
1061 |
7470 |
$921 |
7470-7710 |
$921-950 |
73.2% |
|
PP Thinwall |
- |
- |
- |
- |
- |
- |
- |
|
PPBC |
250 |
65 |
7580 |
$934 |
7580-7720 |
$934-952 |
26.0% |
|
LLDPE |
900 |
429 |
8020 |
$988 |
8230 |
$988-1014 |
47.7% |
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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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Amid the waning performance of the Dalian Commodity Exchange, Chinese bidders demonstrated minimal interest in securing additional cargoes on the Shenhua Auction Platform. This disinterest resulted in a noticeable drop in transactions for coal-based cargoes compared to the previous session.
Despite this tepid demand, Shenhua maintained a firm stance on auction prices, raising homo-PP by CNY 10/ton while keeping LLDPE prices unchanged. This move highlights producers' unwillingness to reduce prices further, despite the apparent lack of buyer enthusiasm.
Over the past week, Chinese bidders have adopted a cautious approach to purchases, driven by concerns that the market still has significant room for further price declines.
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
