|
|
10 October 2024 - Shenhua's coal-based PP and PE Auction ResultsWith key PP and LLDPE contracts on the Dalian Commodity Exchange regaining some stabilization from the downswing in the previous trading day, Chinese bidders were more confident in participating in auctioning for coal-based cargoes on the Shenhua Auction Platform. |
|
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 10 October 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 |
2660 |
1826 |
7330 |
$918 |
7330-7710 |
$918-965 |
68.6% |
|
PPBC |
290.5 |
116 |
7750 |
$970 |
7750-8150 |
$970-1020 |
39.9% |
|
LLDPE |
900 |
850 |
8200 |
$1026 |
8220-8500 |
$1029-1064 |
94.4% |
|
*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. |
|||||||
With key PP and LLDPE contracts on the Dalian Commodity Exchange regaining some stabilization from the downswing in the previous trading day, Chinese bidders were more confident in participating in auctioning for coal-based cargoes on the Shenhua Auction Platform.
Demand for LLDPE was strong, driven by the strong futures contracts and the anticipated reduced import arrivals that would tighten local availability. Meanwhile, the auction outcomes for homo-PP remain weak, although auction prices have decreased by CNY 50/ton, but failed to stimulate additional purchases.
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: Muhammad Hafiz
