12 March 2024 - Shenhua's coal-based PP and PE Auction Results
Players noted that while the auction price for LLDPE has been steady since Monday, buyers who held off purchases from yesterday tend to place new orders after witnessing a comeback on the futures market.
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 12 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 |
1866 |
1566 |
7100 |
$875 |
7130-7400 |
$879-912 |
83.9% |
|
PP Fiber |
- |
- |
- |
- |
- |
- |
- |
|
PPBC |
510 |
350 |
7200 |
$887 |
7200-7440 |
$887-917 |
68.6% |
|
LLDPE |
1100 |
1080 |
7900 |
$974 |
7990-8150 |
$985-1005 |
98.2% |
|
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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Throughout the morning session, there were some encouraging notes from the Dalian Commodity Exchange, which stimulated transactions on the Shenhua Auction Platform, particularly with LLDPE hitting more than 98% of the deals.
Players noted that while the auction price for LLDPE has been steady since Monday, buyers who held off purchases from yesterday tend to place new orders after witnessing a comeback on the futures market. Meanwhile, the auction price for homo-PP gained CNY50/ton yet were still able to fetch encouraging deals.
The anticipated improvement in the local market as well as the observation that prices were hovering around the current level without any significant drop led buyers to cautiously restock cargo.
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