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17 October 2024 - Shenhua's coal-based PP and PE Auction ResultsThe Shenhua auction platform concluded today’s session with mixed results. The PP market continues its rally, supported by a further discount of CNY20/ton ($3/ton), which has sparked buying interest among Chinese bidders. |
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Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 17 October 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 |
2530 |
1978 |
7200 |
$896 |
7200-7600 |
$896-946 |
78.2% |
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PPBC |
298 |
248 |
7350 |
$915 |
7350-7850 |
$915-977 |
83.2% |
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LLDPE |
800 |
500 |
8100 |
$1008 |
8100-8410 |
$1008-1047 |
62.5% |
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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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The Shenhua auction platform concluded today’s session with mixed results. The PP market continues its rally, supported by a further discount of CNY20/ton ($3/ton), which has sparked buying interest among Chinese bidders. Conversely, LLDPE prices have decreased by CNY 30-50/ton compared to the previous auction, yet, the off-take rates have fallen, mimicking the weaker sentiment on the futures market conditions.
As the weekend approaches, buyers remain cautious, lacking confidence in the price outlook and opting to remain on the sidelines in anticipation of further price decline. This hesitance is compounded by the fact that buyers already secured adequate stock during the pre-holiday period in China, leading them to pursue only small purchases at this time.
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
Country
China
