18 February 2024 - Shenhua's coal-based PP and PE Auction Results
The concluded deals reached thus far were encouraging with more warehouses auctioning PP commodities today and in contrast to the days before the Lunar New Year holiday, the auction prices for homo-PP at present are actually stable
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 18 February 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 % |
||
|
CNY/ton |
USD/ton |
CNY/ton |
USD/ton |
||||
|
Combined and reported by CommoPlast |
|||||||
|
Homo-PP |
2600 |
2560 |
7050 |
$876 |
7080-7400 |
$880-920 |
98.5% |
|
PP Fiber |
- |
- |
- |
- |
- |
- |
- |
|
PPBC |
100 |
100 |
7150 |
$889 |
7220 |
$897 |
100.0% |
|
LLDPE |
1050 |
1050 |
7900 |
$982 |
7970-8150 |
$991-1013 |
100.0% |
|
LDPE heavy duty |
- |
- |
- |
- |
- |
- |
- |
|
HDPE |
- |
- |
- |
- |
- |
- |
- |
|
*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 Dalian Commodity Exchange (DCE) for PP and LLDPE is still closed today but some Chinese market participants which were mostly traders have returned to the market, therefore, Shenhua Auction Platform held some auctions this morning. The concluded deals reached thus far were encouraging with more warehouses auctioning PP commodities today and in contrast to the days before the Lunar New Year holiday, the auction prices for homo-PP at present are actually stable, with some even going up by CNY50/ton. There are a handful of warehouses still offering homo-PP at a CNY50/ton discount, while the prices for LLDPE auctions are higher by CNY100/ton than they were before the holiday.
Market players reported feeling unperturbed as there were no other "bad factors" affecting the trend during the extended holiday, furthermore, the energy crude price remained stable. As a result, many buyers who had anticipated a strong post-holiday price were willing to place some orders today but the majority of cargo takers were traders as the masses of manufacturers have yet to return to the marketplace.
Background:
Shenhua Baotou Coal Chemical Co is currently the largest coal-based polyolefins producer in China, operates under four subsidiaries, namely: 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 has an annual capacity of 2.65 million tons/year of PP, 750,000 tons/year of HDPE/LLDPE and 570,000 tons/year of LDPE.
Shenhua Baotou Coal Chemical Co is active in spot trading, while also conducting the daily auction for its cargoes daily between 10AM to 12PM on the official online platform that specifically designed for this purpose: https://www.e-chnenergy.com