May 19, 2024 12:58 a.m.

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

The auctioned LLDPE achieved a 100% rate thanks to the limited volume, while homo-PP saw a slight decrease compared to the previous day, attributed to a CNY10/ton higher dealt price.

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Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 18 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

1096

7450

$911

7480-7660

$914-936

79.1%

PP Fiber

-

-

-

-

-

-

-

PPBC

200

183

7650

$935

7670-7750

$938-947

91.5%

LLDPE

500

500

8300

$1015

8330-8360

$1018-1022

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.


As Shenhua's plants are on maintenance turnarounds, the supply available for auction was limited. The auctioned LLDPE achieved a 100% rate thanks to the limited volume, while homo-PP saw a slight decrease compared to the previous day, attributed to a CNY10/ton higher dealt price.

The auctioned prices for both homo-PP and LLDPE were CNY50 – 60/ton higher than Wednesday, reflecting the producer's firm stance on pricing. However, this failed to incite any significant buying activity among customers, as cautiousness prevailed in the market.

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