09 April 2024 - Shenhua's coal-based PP and PE Auction Results
The market had initially anticipated a more robust price outlook upon returning from the holiday, given the uptrend of crude prices during that time.
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 09 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 |
1386 |
911 |
7400 |
$906 |
7440-7610 |
$911-931 |
65.7% |
|
PP Fiber |
- |
- |
- |
- |
- |
- |
- |
|
PPBC |
200 |
193 |
7450 |
$912 |
7500-7670 |
$918-939 |
96.5% |
|
LLDPE |
1050 |
700 |
8250 |
$1010 |
8280-8390 |
$1013-1027 |
66.7% |
|
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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Concluded homo-PP and LLDPE deals on the Shenhua Auction Platform were on a downward trajectory compared to Monday with only 65.7% and 66.7% completed deals respectively.
The market had initially anticipated a more robust price outlook upon returning from the holiday, given the uptrend of crude prices during that time. However, buying activities fell short of expectations both yesterday and today, with auction sales notably on a subpar level.
Auction prices for homo-PP held steady from yesterday, whereas LLDPE saw a modest increase of CNY30/ton, which persisted resistance from buyers. Furthermore, PPBC witnessed a slight CNY50/ton discount, resulting in increased transaction volume. There is growing anticipation among traders regarding the potential for price reduction in the near term to stimulate further market activity.
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