|
|
20 August 2024 - Shenhua's coal-based PP and PE Auction ResultsThe surge in import LLDPE arrivals has heightened concerns about hidden inventory pressures among local traders, prompting buyers to pull back on their purchases, further dampening market activity. |
|
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 20 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 |
1590 |
1122 |
7500 |
$928 |
7500-7750 |
$928-959 |
70.6% |
|
PP Thinwall |
- |
- |
- |
- |
- |
- |
- |
|
PPBC |
470 |
95 |
7600 |
$941 |
7700-7800 |
$953-965 |
20.2% |
|
LLDPE |
900 |
120 |
8120 |
$1005 |
8120-8150 |
$1005-1009 |
13.3% |
|
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. |
|||||||
Trading sentiment on the Shenhua Auction Platform plummeted on the second trading day of the week, with LLDPE film achieving a dismal 13% transaction rate. The weak auction results were partly driven by bearish futures contracts on the Dalian Commodity Exchange, but the more significant factor was the cautious stance adopted by bidders who were reassessing the latest import data.
The surge in import LLDPE arrivals has heightened concerns about hidden inventory pressures among local traders, prompting buyers to pull back on their purchases, further dampening market activity.
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
