22 April 2024 - Shenhua's coal-based PP and PE Auction Results
The firmer auction prices, with homo-PP and LLDPE seeing increases of CNY50/ton and CNY40/ton respectively, contributed to the lower deal rate as buyers displayed resistance on the platform.
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 22 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 |
1316 |
1113 |
7500 |
$917 |
7510-7680 |
$918-939 |
84.6% |
|
PP Fiber |
- |
- |
- |
- |
- |
- |
- |
|
PPBC |
250 |
200 |
7650 |
$935 |
7730-7800 |
$945-953 |
80.0% |
|
LLDPE |
800 |
705 |
8300 |
$1015 |
8300-8430 |
$1015-1030 |
88.1% |
|
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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After a perfect concluded rate last Friday, today’s biddings on the Shenhua Auction Platform saw a slightly weaker outcome with over 80% concluded deals for all three materials.
The firmer auction prices, with homo-PP and LLDPE seeing increases of CNY50/ton and CNY40/ton respectively, contributed to the lower deal rate as buyers displayed resistance on the platform. However, both import and local markets had limited cargoes available due to maintenance season, which led to some need-based purchases.
“We anticipate discounts before the Labour Day holiday, but most price discussions are expected to take place during the upcoming ChinaPlas fair in Shanghai from tomorrow onwards,” commented a local trader.
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