|
|
19 August 2024 - Shenhua's coal-based PP and PE Auction ResultsAfter a week of sluggish trading, the Shenhua Auction Platform commenced the new week with robust activity, buoyed by a rebound in futures contracts on the Dalian Commodity Exchange. Despite the improved trading sentiment, the coal-based producer strategically reduced auction prices |
|
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 19 August 2024. The following table showed the details of the auction results for prime grade only:
|
Product |
Auction Volume |
Deal Volume |
Auction Prices |
Deal Prices |
Deal % |
||
|
CNY/ton |
USD/ton |
CNY/ton |
USD/ton |
||||
|
Combined and reported by CommoPlast |
|||||||
|
Homo-PP |
1500 |
1350 |
7500 |
$928 |
7510-7750 |
$930-959 |
90.0% |
|
PP Thinwall |
- |
- |
- |
- |
- |
- |
- |
|
PPBC |
550 |
305 |
7500 |
$928 |
7500-7810 |
$928-967 |
55.5% |
|
LLDPE |
900 |
900 |
8120 |
$1005 |
8120-8150 |
$1005-1009 |
100.0% |
|
LDPE heavy duty |
- |
- |
- |
- |
- |
- |
- |
|
HDPE |
- |
- |
- |
- |
- |
- |
- |
|
*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. |
|||||||
After a week of sluggish trading, the Shenhua Auction Platform commenced the new week with robust activity, buoyed by a rebound in futures contracts on the Dalian Commodity Exchange. Despite the improved trading sentiment, the coal-based producer strategically reduced auction prices by CNY 40/ton for LLDPE film and CNY 80/ton for homo-PP, further bolstering the auction session's performance.
A trader remarked, “The market is highly price sensitive. Without these price cuts, it's uncertain whether the producer would have achieved such strong auction results.”
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
