01 April 2024 - Shenhua's coal-based PP and PE Auction Results
The market continued to leverage the tightening supply outlook as local PP and PE plants enter maintenance season while the latest official data from the government showed manufacturing activities in the country expanded for the first time in six months in March
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 01 April 2024. The following table shows 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 |
1252 |
1252 |
7150 |
$875 |
7210-7600 |
$883-930 |
100.0% |
|
PP Fiber |
- |
- |
- |
- |
- |
- |
- |
|
PPBC |
- |
- |
- |
- |
- |
- |
- |
|
LLDPE |
866 |
866 |
8050 |
$985 |
8100-8270 |
$991-1012 |
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. |
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Following a rebound on the Dalian Commodity Exchange, trading sentiment on the Shenhua Auction platform improved significantly on the first trading day of the week. The coal-based producer managed to achieve a 100% deal on both homo-PP and LLDPE without major discounts on prices.
The market continued to leverage the tightening supply outlook as local PP and PE plants enter maintenance season while the latest official data from the government showed manufacturing activities in the country expanded for the first time in six months in March, signalling the economic recovery progress.
Meanwhile, Shenhua’s coal-based PP and PE cargoes are about CNY100 – 150/ton below key contracts on the Dalian Commodity Exchange at the moment – an acceptable price gap for many arbitrage traders.
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