Apr 19, 2024 7:43 a.m.

02 April 2024 - Shenhua's coal-based PP and PE Auction Results

It was noted that most activity came from local traders sourcing hand-to-mouth inventories and the preferred material was homo-PP as it was CNY100-150/ton ($14-21/ton) lower than the local cargoes.

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Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 02 April 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

1270

1220

7200

$881

7230-7530

$885-922

96.1%

PP Fiber

-

-

-

-

-

-

-

PPBC

-

-

-

-

-

-

-

LLDPE

1000

873

8150

$998

8150-8300

$998-1016

87.3%

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.

 

Following an exceptional auction session on Monday, transactions on the Shenhua auction platform dropped slightly as the producer attempted to lift LLDPE prices by CNY30 – 50/ton day-on-day. 

It was noted that most activity came from local traders sourcing hand-to-mouth inventories and the preferred material was homo-PP as it was CNY100-150/ton ($14-21/ton) lower than the local cargoes.

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