07 March 2024 - Shenhua's coal-based PP and PE Auction Results
After noting consistent pricing, customers were observed restocking coal-based cargoes as the auction prices are still more competitive than regular parcels in the domestic spot market.
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 07 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 |
2016 |
1903 |
7100 |
$873 |
7130-7390 |
$876-908 |
94.4% |
|
PP Fiber |
- |
- |
- |
- |
- |
- |
- |
|
PPBC |
100 |
100 |
7200 |
$885 |
7240-7250 |
$890-891 |
100.0% |
|
LLDPE |
900 |
849 |
7850 |
$965 |
7960-8100 |
$978-996 |
94.3% |
|
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. |
|||||||
Throughout the morning session, key PP and LLDPE contracts on the Dalian Commodity Exchange have been on a range-bound trend, with LLDPE futures showing a little stronger than PP futures. For this reason, the transactions on the Shenhua Auction Platform continue to be positive for both PP and PE.
After noting consistent pricing, customers were observed restocking coal-based cargoes as the auction prices are still more competitive than regular parcels in the domestic spot market. Market participants remain cautious about the near-term prospects and anticipate that the continued modest buying activity will prevent any further price increases.
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