14 March 2024 - Shenhua's coal-based PP and PE Auction Results
The auction price for LLDPE stayed consistent from yesterday but finished weaker transactions, however, surprisingly homo-PP achieved 100% sales despite higher deal prices
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 14 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 |
1966 |
7120 |
$876 |
7150-7430 |
$880-914 |
100.0% |
|
PP Fiber |
- |
- |
- |
- |
- |
- |
- |
|
PPBC |
400 |
378 |
7350 |
$905 |
7410-7470 |
$912-919 |
94.5% |
|
LLDPE |
1150 |
633 |
7950 |
$978 |
7990-8100 |
$983-997 |
55.0% |
|
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 the auction session on a strong note for homo-PP thanks to the growing concerns over the near-term supply outlook amid heavy maintenance schedules among local PP plants. Buying interest for coal-based LLDPE film, meanwhile, dropped sharply.
The auction price for LLDPE stayed consistent from yesterday but finished weaker transactions, however, surprisingly homo-PP achieved 100% sales despite higher deal prices of around CNY30-40/ton than on Wednesday.
Market players noted that this was a strong indicator that buyers were willing to pay a higher price for some needed cargoes in light of the overall tight supply outlook despite the uncertainties on the sustainability of the upswing.
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