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23 August 2024 - Shenhua's coal-based PP and PE Auction ResultsChinese buyers, having largely fulfilled their purchasing needs earlier in the week, have now adopted a cautious approach. These buyers are refraining from further commitments while evaluating the near-term market outlook, reflecting broader uncertainties in the market. |
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Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 23 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 |
1390 |
1049 |
7450 |
$923 |
7480-7710 |
$927-956 |
75.5% |
|
PP Thinwall |
- |
- |
- |
- |
- |
- |
- |
|
PPBC |
150 |
43 |
7650 |
$948 |
7680-7700 |
$952-954 |
28.7% |
|
LLDPE |
1150 |
743 |
8000 |
$992 |
8060-8100 |
$999-1004 |
64.6% |
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LDPE heavy duty |
- |
- |
- |
- |
- |
- |
- |
|
HDPE |
- |
- |
- |
- |
- |
- |
- |
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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 the final auction session of the week on a subdued note, with bidders retreating from the market in response to the weakened futures contracts on the Dalian Commodity Exchange. In an attempt to counteract this downturn, Shenhua reduced auction prices by CNY 60/ton for LLDPE film, but the move fell short, as the producer was unable to achieve full transactions.
Chinese buyers, having largely fulfilled their purchasing needs earlier in the week, have now adopted a cautious approach. These buyers are refraining from further commitments while evaluating the near-term market outlook, reflecting broader uncertainties in the market.
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
