07 May 2024 - Shenhua's coal-based PP and PE Auction Results
This surge can be attributed to several factors, prominently the resurgence of the futures market.
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 07 May 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 |
1262 |
1121 |
7250 |
$889 |
7320-7620 |
$897-934 |
88.8% |
|
PP Fiber |
- |
- |
- |
- |
- |
- |
- |
|
PPBC |
266 |
266 |
7550 |
$925 |
7680-7860 |
$941-963 |
100.0% |
|
LLDPE |
900 |
900 |
8280 |
$1015 |
8320-8470 |
$1020-1038 |
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. |
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The biddings on the Shenhua Auction Platform experienced a favourable upturn from yesterday’s session with PPBC and LLDPE achieving 100% success rate and homo-PP above 80% concluded rate even with the higher auction volume by 200 tons.
This surge can be attributed to several factors, prominently the resurgence of the futures market. Compared to Monday, where transactions were largely dominated by arbitrage traders, auctioned sales saw a considerable uptick.
Furthermore, the pricing played a key role in driving the heightened performance on the auction platform with homo-PP and LLDPE witnessing price reductions of CNY100/ton and CNY70/ton, respectively.
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