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05 March 2025 - Shenhua's coal-based PP and PE Auction ResultsDespite price adjustments, buyers maintained a cautious, hand-to-mouth purchasing approach. While LLDPE transaction volumes appeared to rise by 33%, a closer look revealed that allocations had been cut by 32%, leaving actual buying activity largely unchanged from the previous day. |
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Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 05 March 2025.
The following table shows 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 |
1650 |
1141 |
7080 |
$863 |
7080-7360 |
$863-897 |
69.2% |
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LLDPE |
650 |
571 |
7950 |
$969 |
7950-8080 |
$969-985 |
87.8% |
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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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The Shenhua Auction Platform traded on a stable-to-softer note, mirroring a weakening trend on the Dalian Commodity Exchange. Sentiment deteriorated amid declines in the international oil market and heightened caution over escalating trade tensions between China and the United States.
Despite price adjustments, buyers maintained a cautious, hand-to-mouth purchasing approach. While LLDPE transaction volumes appeared to rise by 33%, a closer look revealed that allocations had been cut by 32%, leaving actual buying activity largely unchanged from the previous day.
In the PP sector, purchase volumes slipped by 23% from the previous morning session, underscoring the market’s broader weakness. In the spot market, offers have stagnated for three consecutive weeks, denoting a muddy near-term outlook amid global economic uncertainties.
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: Derek Yong
Country
China
