28 March 2024 - Shenhua's coal-based PP and PE Auction Results
Trading sentiment on the Shenhua auction platform dimmed further as March drew near to an end. Market participants especially focused on the still high auction volume at this time of month, which signals the possibility of rising sales pressure in the coming days.
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 28 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 |
2290 |
1703 |
7200 |
$881 |
7210-7440 |
$883-911 |
74.4% |
|
PP Fiber |
- |
- |
- |
- |
- |
- |
- |
|
PPBC |
- |
- |
- |
- |
- |
- |
- |
|
LLDPE |
700 |
471 |
8000 |
$979 |
8080-8110 |
$989-993 |
67.3% |
|
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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Trading sentiment on the Shenhua auction platform dimmed further as March drew near to an end. Market participants especially focused on the still high auction volume at this time of month, which signals the possibility of rising sales pressure in the coming days.
Market participants blamed the dwindling futures contracts on the Dalian Commodity Exchange for the soft auction results while still hoping to see pre-holiday replenishment activities ahead of the Tomb Sweeping Festival.
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