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23 September 2024 - Shenhua's coal-based PP and PE Auction ResultsShenhua Auction Platform concluded the first trading session of the week on a mixed note, reflecting the demand disparities between the grades. While LLDPE secured a satisfactory number of transactions, Chinese bidders were unfazed by the presence of lower-priced homo-PP cargoes. |
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Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 23 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 |
1550 |
602 |
7160 |
$899 |
7160-7500 |
$899-941 |
38.8% |
|
PPBC |
1046 |
537 |
7230 |
$908 |
7350-7810 |
$923-980 |
51.3% |
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LLDPE |
900 |
799 |
7900 |
$992 |
7900-8090 |
$992-1016 |
88.8% |
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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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Shenhua Auction Platform concluded the first trading session of the week on a mixed note, reflecting the demand disparities between the grades. While LLDPE secured a satisfactory number of transactions, Chinese bidders were unfazed by the presence of lower-priced homo-PP cargoes.
Market sources attributed the better auction outcome of LLDPE to the steady demand from the agricultural film sector and tighter availability in the import market.
With the National Day holiday fast approaching, Chinese market participants are monitoring closely the pre-holiday replenishment activities to gauge the possible market direction in October.
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
