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03 December 2024 - Shenhua's coal-based PP and PE Auction ResultsTrading sentiment on the Shenhua auction platform ended on a strong note, defying the softening trend in PP and PE futures on the Dalian Commodity Exchange. Demand for LLDPE remained robust, with buyers undeterred by a CNY 50/ton price increase |
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Shenhua Baotou Coal Chemical Co concluded the auction session for its coal-based PP and PE cargoes on 03 December 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 |
980 |
848 |
7230 |
$878 |
7240-7540 |
$879-915 |
86.5% |
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PPBC |
48 |
48 |
7900 |
$959 |
7940-7950 |
$964-965 |
100% |
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LLDPE |
600 |
598 |
8500 |
$1031 |
8540-8730 |
$1037-1060 |
99.7% |
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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 sentiment on the Shenhua auction platform ended on a strong note, defying the softening trend in PP and PE futures on the Dalian Commodity Exchange. Demand for LLDPE remained robust, with buyers undeterred by a CNY 50/ton price increase, reflecting heightened confidence in this grade.
A local trader explained, “In recent weeks, Shenhua has oversold cargoes through the offline market, reducing the volume of material available for auction. This has provided some support for upcoming price levels.”
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
