20 February 2024 - Shenhua's coal-based PP and PE Auction Results
The trading market is forecasted to have mediocre sales this week as more buyers take on a reserved approach to monitor the upcoming market direction.
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 20 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 |
2290 |
1566 |
7080 |
$870 |
7200-7380 |
$885-907 |
68.4% |
|
PP Fiber |
- |
- |
- |
- |
- |
- |
- |
|
PPBC |
590 |
229 |
7200 |
$885 |
7410-7450 |
$911-916 |
38.8% |
|
LLDPE |
750 |
600 |
7920 |
$973 |
8060-8100 |
$991-996 |
80.0% |
|
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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A surprising turn of events happened at the Shenhua Auction Platform today. Even with the much lower auctioned volume today for all three commodities: homo-PP, PPBC and LLDPE; the volume dealt was also quite low compared to yesterday’s session. Even though homo-PP and LLDPE were auctioned at a discounted rate compared to yesterday at CNY70/ton for the former and CNY30/ton for the latter, it still did not manage to entice demand.
It was reported that some sellers are waiting for the market to warm up, as was anticipated by our analysts in CommoPlast. The trading market is forecasted to have mediocre sales this week as more buyers take on a reserved approach to monitor the upcoming market direction. It would be a challenge to reach a favourable outcome for both buyers and sellers; sellers would need to account for the upstream cost, thus increasing their price offerings, however, weak demand from buyers is putting the sellers in a tight situation.
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