18 March 2024 - Shenhua's coal-based PP and PE Auction Results
Players also attributed the success rate for homo-PP today were due to the CNY30/ton discount from last Friday while LLDPE were at CNY50/ton higher, which explains the apparent resistance from buyers.
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 18 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 |
1700 |
1650 |
7150 |
$879 |
7190-7490 |
$884-921 |
97.1% |
|
PP Fiber |
- |
- |
- |
- |
- |
- |
- |
|
PPBC |
200 |
200 |
7400 |
$910 |
7500-7540 |
$922-927 |
100.0% |
|
LLDPE |
1050 |
760 |
8100 |
$996 |
8140-8200 |
$1000-1008 |
72.4% |
|
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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The recently completed coal-based polyolefins sales on the Shenhua Auction Platform posed variant outcomes with homo-PP doing remarkably well with approximately 97% deals achieved given the circumstances as more local plant facilities going into scheduled shutdowns. LLDPE had the weakest sales concluded.
Players also attributed the success rate for homo-PP today were due to the CNY30/ton discount from last Friday while LLDPE were at CNY50/ton higher, which explains the apparent resistance from buyers.
Overall, market sentiment was still sluggish and only need-based purchases were observed this morning. Further monitoring of the market is ideal as market players are still cautious about some form of rebound in the near term.
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