CommoPlast Article

Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 18 December 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 %
Product	Auction Volume	Deal Volume	CNY/ton	USD/ton	CNY/ton	USD/ton	Deal %
*Combined and reported by CommoPlast*
Homo-PP	460	390	7500	$910	7500-7560	$910-918	84.8%
PPBC	-	-	-	-	-	-	-
LLDPE	100	94	8680	$1054	8720	$1059	94.0%
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.

Despite Shenhua's ultimately positive trading performance, the homo-PP market weakened, with transaction volumes moderating visibly from the previous session. This decline was predominantly driven by bearish sentiment reflected in futures contracts on the Dalian Commodity Exchange despite a sharp reduction in auction volumes.

Meanwhile, the coal-based producer allocated merely 100 tons of LLDPE to the auction. This quantity was minuscule compared to the abrupt surge in demand for this grade in the domestic spot market.

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.

18 December 2024 - Shenhua's coal-based PP and PE Auction Results