21 February 2024 - Shenhua's coal-based PP and PE Auction Results
Following a disappointing auction result in the previous session, Shenhua stepped up the effort to encourage purchasing activities by offering CNY70-80/ton discounts on the auction prices, leading to improved dealt volume today.
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 21 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 |
3050 |
1895 |
7000 |
$860 |
7150-7310 |
$879-898 |
62.1% |
|
PP Fiber |
- |
- |
- |
- |
- |
- |
- |
|
PPBC |
400 |
300 |
7150 |
$879 |
7360-7410 |
$905-911 |
75.0% |
|
LLDPE |
950 |
625 |
7850 |
$965 |
8000-8030 |
$983-987 |
65.8% |
|
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. |
|||||||
Following a disappointing auction result in the previous session, Shenhua stepped up the effort to encourage purchasing activities by offering CNY70-80/ton discounts on the auction prices, leading to improved dealt volume today.
Some players reported that the transacted deal prices for PP and LLDPE were comparatively lower than yesterday indicating that consumer acceptability of price levels is waning today. Moreover, several sellers stated that they expect prices to be under pressure in the near term while they await the next round of eager customers.
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