17 April 2024 - Shenhua's coal-based PP and PE Auction Results
Consequently, those in need of replenishing cargoes showed a preference for sourcing from the auction due to the comparatively more attractive pricing than the spot market.
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 17 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 |
1551 |
1335 |
7400 |
$905 |
7480-7650 |
$914-935 |
86.1% |
|
PP Fiber |
- |
- |
- |
- |
- |
- |
- |
|
PPBC |
150 |
150 |
7650 |
$935 |
7690-7770 |
$940-950 |
100.0% |
|
LLDPE |
800 |
674 |
8240 |
$1007 |
8240-8380 |
$1007-1024 |
84.3% |
|
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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Concluded deals on the Shenhua Auction Platform saw a variance of biddings with homo-PP performing better in terms of dealt volume and dealt prices compared to the previous session. Conversely, LLDPE and PPBC experienced slightly weaker deals.
Buyers exercised caution with anticipation of limited downward movement in prices in the near term. Consequently, those in need of replenishing cargoes showed a preference for sourcing from the auction due to the comparatively more attractive pricing than the spot market. This preference arose from the firm stance adopted by local producers on recent offers, further incentivizing buyers to explore auction options for procurement.
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