20 March 2024 - Shenhua's coal-based PP and PE Auction Results
Players said it was because the auction price was kept at a constant level whereas local sellers were increasing the spot offers by CNY50/ton, producing favourable dealings on the auction platform instead.
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 20 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 |
2200 |
2200 |
7200 |
$885 |
7280-7570 |
$895-930 |
100.0% |
|
PP Fiber |
- |
- |
- |
- |
- |
- |
- |
|
PPBC |
189 |
189 |
7450 |
$916 |
7550-7590 |
$928-933 |
100.0% |
|
LLDPE |
900 |
900 |
8150 |
$1002 |
8170-8290 |
$1004-1019 |
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 clearances. |
|||||||
The Shenhua Auction Platform ended today’s session with a remarkable feat with PP and PE achieving 100% concluded deals. Players said it was because the auction price was kept at a constant level whereas local sellers were increasing the spot offers by CNY50/ton, producing favourable dealings on the auction platform instead.
Buyers who needed a quick need-based replenishment sought from the auction leading to weaker sales in the local market. Traders were left to ponder whether a further price increase is justifiable.
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