10 April 2024 - Shenhua's coal-based PP and PE Auction Results
Nevertheless, Shenhua is not in a rush to make any major price adjustment and it is expected that the coal-based producer might continue to cut auction allocation considering the upcoming shutdown
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 10 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 |
886 |
397 |
7400 |
$906 |
7440-7730 |
$906-911 |
44.8% |
|
PP Fiber |
- |
- |
- |
- |
- |
- |
- |
|
PPBC |
200 |
34 |
7500 |
$918 |
7650 |
$936 |
17.0% |
|
LLDPE |
400 |
300 |
8250 |
$1010 |
8320 |
$1018 |
75.0% |
|
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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Trading activities on the Shenhua Auction Platform fell sharply in today’s session even though the producer allocated substantially lower quantities to the auction. The falling Dalian Commodity Exchange is blamed for the disappointing auction results, market sources said.
Nevertheless, Shenhua is not in a rush to make any major price adjustment and it is expected that the coal-based producer might continue to cut auction allocation considering the upcoming shutdown at the PP and HDPE/LLDPE swing plant, each has a capacity of 300,000 tons/year.
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