Apr 19, 2024 8:15 a.m.

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.

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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