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20 January 2025 - Shenhua's coal-based PP and PE Auction ResultsNotably, a CNY100/ton reduction in LLDPE auction prices failed to revive the purchasing appetite. Buyer-side inactivity in this segment arose from cautions surrounding a continued weakening spot market and converters’ production halts ahead of the Lunar New Year holiday. |
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Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 20 August 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 |
700 |
700 |
7200 |
$869 |
7200-7410 |
$869-895 |
100.0% |
|
PPBC |
- |
- |
- |
- |
- |
- |
- |
|
LLDPE |
900 |
311 |
8050 |
$972 |
8150-8390 |
$984-1013 |
36.8% |
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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 activity on the Shenhua Auction Platform concluded on a mixed note, with significantly greater interest in homo-PP than LLDPE cargoes for the seventh consecutive trading day. This divergent outcome reflected that of the Dalian Commodity Exchange’s morning session, during which LLDPE contracts declined despite homo-PP contract stability.
Notably, a CNY100/ton reduction in LLDPE auction prices failed to revive the purchasing appetite. Buyer-side inactivity in this segment arose from cautions surrounding a continued weakening spot market and converters’ production halts ahead of the Lunar New Year holiday.
Looking ahead, market participants expect a further slowdown in trading activity. A recent CommoPlast survey revealed that nearly 80% of PE converters plan to have halted operations by the middle of this week.
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.
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Written by: Kat Yun Yun
Edited by: Derek Yong
Country
China
