05 March 2024 - Shenhua's coal-based PP and PE Auction Results
Trading sentiment on the Shenhua auction platform continues to decline in the second session of the week with coal-based LLDPE film cargoes achieving just 30% of transactions from the available quantity.
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 05 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 |
2066 |
1626 |
7100 |
$873 |
7100-7400 |
$873-910 |
78.7% |
|
PP Fiber |
- |
- |
- |
- |
- |
- |
- |
|
PPBC |
100 |
100 |
7150 |
$879 |
7200-7210 |
$885-886 |
100.0% |
|
LLDPE |
900 |
272 |
7850 |
$965 |
7900-8090 |
$971-994 |
30.2% |
|
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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Trading sentiment on the Shenhua auction platform continues to decline in the second session of the week with coal-based LLDPE film cargoes achieving just 30% of transactions from the available quantity. Market sources said the weakening purchasing activities are a direct result of the continued falling futures contracts on the Dalian Commodity Exchange.
The cautious stance among Chinese bidders is rather prevalent. Shenhua attempted to stimulate buying interest by lowering deal prices by CNY 20 - 40/ton compared to the previous session, yet, the effort was proven less than effective.
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