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10 September 2024 - Shenhua's coal-based PP and PE Auction ResultsTrading activity on the Shenhua Auction Platform mirrored developments on the Dalian Commodity Exchange during the second trading day of the week. Robust performance in the LLDPE futures market boosted buying interest for coal-based cargoes on the platform. |
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Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 10 September 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 |
1750 |
1093 |
7350 |
$914 |
7430-7620 |
$923-947 |
62.5% |
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PPBC |
599 |
456 |
7250 |
$901 |
7250-7850 |
$901-976 |
76.1% |
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LLDPE |
600 |
600 |
8010 |
$996 |
8050-8060 |
$1001-1002 |
100.0% |
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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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Trading activity on the Shenhua Auction Platform mirrored developments on the Dalian Commodity Exchange during the second trading day of the week. Robust performance in the LLDPE futures market boosted buying interest for coal-based cargoes on the platform. In contrast, the persistent decline in PP futures resulted in lackluster auction outcomes for PP.
Market sources indicated that a similar trend is unfolding in the domestic spot market. The agricultural film season has bolstered demand in the PE film sector, providing some degree of support. However, confidence in the PP market remains notably low, reflecting broader uncertainties and subdued market sentiment.
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
