15 March 2024 - Shenhua's coal-based PP and PE Auction Results
A totally unexpected curve ball happened on the Shenhua Auction Platform with all three commodities: homo-PP, PPBC and LLDPE achieving 100% deals. The deal prices today were also higher in comparison to Thursday’s session
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 15 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 |
1824 |
1824 |
7180 |
$882 |
7220-7490 |
$887-921 |
100.0% |
|
PP Fiber |
- |
- |
- |
- |
- |
- |
- |
|
PPBC |
300 |
300 |
7350 |
$903 |
7460-7520 |
$917-924 |
100.0% |
|
LLDPE |
1100 |
1100 |
8050 |
$989 |
8100-8180 |
$996-1005 |
100.0% |
|
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 clearanceAs. |
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A totally unexpected curve ball happened on the Shenhua Auction Platform with all three commodities: homo-PP, PPBC and LLDPE achieving 100% deals. The deal prices today were also higher in comparison to Thursday’s session with PP at CNY60/ton higher and LLDPE at CNY100/ton higher. This was in direct result of the Dalian Commodity Exchange earlier this morning posing a significant rebound with PP and LLDPE futures increased by more than 1.5% or a hike of more than CNY100/ton from yesterday.
This is the first time in 2024, PP and PE auction sales are seeing 100% deals.
Local producers anticipated to continue holding firm stance on their offers next week and hope for a rebound as demand is still weak. They considered this kind of ‘exceptionally perfect condition’ might just be out of the blue and, thus, were content to ride along.
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