13 March 2024 - Shenhua's coal-based PP and PE Auction Results
The producer lured buyers to the market by offering a CNY20-30/ton discount on deal prices for both homo-PP and LLDPE compared to the previous session.
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 13 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 % |
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|
CNY/ton |
USD/ton |
CNY/ton |
USD/ton |
||||
|
Combined and reported by CommoPlast |
|||||||
|
Homo-PP |
2016 |
1966 |
7100 |
$874 |
7110-7400 |
$875-911 |
97.5% |
|
PP Fiber |
- |
- |
- |
- |
- |
- |
- |
|
PPBC |
460 |
300 |
7200 |
$886 |
7210-7430 |
$887-914 |
65.2% |
|
LLDPE |
1150 |
931 |
7950 |
$978 |
7990-8120 |
$983-999 |
81.0% |
|
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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Shenhua concluded today’s auction session for coal-based cargoes on a satisfactory note regardless of the soft futures contracts on the Dalian Commodity Exchange. The producer lured buyers to the market by offering a CNY20-30/ton discount on deal prices for both homo-PP and LLDPE compared to the previous session.
While both coal-based homo-PP and LLDPE film on the Shenhua auction platform are lower than the regular cargoes in the domestic spot market, there is a differential in the price gaps. Data showed between the two grades, coal-based homo-PP is much lower than regular materials in comparison to the case of LLDPE, which also explained the stronger buying interest for coal-based homo-PP parcels from Shenhua.
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