19 March 2024 - Shenhua's coal-based PP and PE Auction Results
Overall concluded deals on the Shenhua Auction Platform saw excellent results with PP and PE achieving deals above 90%, much stronger than on Monday
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 19 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 |
2250 |
2210 |
7200 |
$885 |
7270-7570 |
$894-930 |
98.2% |
|
PP Fiber |
- |
- |
- |
- |
- |
- |
- |
|
PPBC |
320 |
320 |
7450 |
$916 |
7500-7580 |
$922-932 |
100.0% |
|
LLDPE |
950 |
862 |
8150 |
$1002 |
8160-8280 |
$1003-1018 |
90.7% |
|
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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Overall concluded deals on the Shenhua Auction Platform saw excellent results with PP and PE achieving deals above 90%, much stronger than on Monday. It was evidently a positive outcome following the success of the Dalian Commodity Exchange earlier this morning.
The auction prices for PP and LLDPE were CNY50/ton higher than yesterday yet still yielded a good outcome. Customers were spotted acquiring cargoes after witnessing the futures market and local sellers’ offers increased daily. Market participants are attentively monitoring to see how far the price can rise 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