04 March 2024 - Shenhua's coal-based PP and PE Auction Results
The overall domestic buying activity is weak and market players have reportedly taken a cautious approach while they wait for the outcome of the Two Sessions meeting, which is scheduled for tomorrow, 05 March 2024.
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 04 March 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 |
1966 |
1816 |
7100 |
$873 |
7130-7440 |
$876-914 |
92.4% |
|
PP Fiber |
- |
- |
- |
- |
- |
- |
- |
|
PPBC |
- |
- |
- |
- |
- |
- |
- |
|
LLDPE |
1200 |
710 |
7850 |
$965 |
7920-8210 |
$973-1009 |
59.2% |
|
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 Shenhua auction platform concluded the trading session on the first day of the week on a mixed note, clearly mimicking the development of the Dalian Commodity Exchange. In fact, with key PP contracts on the futures market traded on a stronger note than LLDPE, so did the transactions on the Shenhua auction platform.
Market players disclosed that the transactions primarily stem from buyers' need-based purchases. The overall domestic buying activity is weak and market players have reportedly taken a cautious approach while they wait for the outcome of the Two Sessions meeting, which is scheduled for tomorrow, 05 March 2024. Everyone is interested in seeing if the government will introduce any policies to further boost the local economy.
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