|
|
20 September 2024 - Shenhua's coal-based PP and PE Auction ResultsMarket participants attributed the weaker performance of homo-PP to the absence of lower-priced cargoes seen in the previous session, which left the higher-priced parcels struggling to attract bids. |
|
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 20 September 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 |
1700 |
1158 |
7320 |
$919 |
7320-7510 |
$919-943 |
68.1% |
|
PPBC |
718.4 |
499.4 |
7050 |
$885 |
7050-7600 |
$885-954 |
69.5% |
|
LLDPE |
800 |
800 |
7900 |
$992 |
7930-8120 |
$995-1019 |
100.0% |
|
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. |
|||||||
Shenhua concluded the final auction session of the week with mixed results. While LLDPE achieved a full clearance of available quantities, the outcome for homo-PP was less favorable. Market participants attributed the weaker performance of homo-PP to the absence of lower-priced cargoes seen in the previous session, which left the higher-priced parcels struggling to attract bids.
Despite resilient futures contracts on the Dalian Commodity Exchange offering some support, Chinese buyers remain cautious, constrained by ongoing market uncertainties.
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
