CommoPlast Article

Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 28 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 %
Product	Auction Volume	Deal Volume	CNY/ton	USD/ton	CNY/ton	USD/ton	Deal %
*Combined and reported by CommoPlast*
Homo-PP	1150	700	7510	$932	7510-7750	$932-962	60.9%
PPBC	250	200	7680	$953	7700-7720	$956-958	80.0%
LLDPE	960	667	8000	$993	8000-8300	$993-1030	69.5%
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.

As the rally on the Dalian Commodity Exchange loses steam, Chinese bidders have pulled back from the Shenhua Auction Platform to reassess the near-term outlook, leading to a significant drop in transactions.

Market sources indicate that most buyers have already completed their weekly purchases and are expected to stay on the sidelines for the rest of the week. However, there is a cautious optimism that demand in September may continue to improve.

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.

28 August 2024 - Shenhua's coal-based PP and PE Auction Results