08 May 2024 - Shenhua's coal-based PP and PE Auction Results
All available commodities had deal prices that were marginally higher but still able to fetch good end figures suggesting market acceptance.
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 08 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 |
1219 |
1119 |
7400 |
$906 |
7450-7650 |
$912-936 |
91.8% |
|
PP Fiber |
- |
- |
- |
- |
- |
- |
- |
|
PPBC |
316 |
266 |
7650 |
$936 |
7730-7890 |
$946-966 |
84.2% |
|
LLDPE |
900 |
900 |
8300 |
$1016 |
8350-8490 |
$1022-1039 |
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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Today’s overall session on the Shenhua Auction Platform was satisfactory, mimicking the rebound note on the Dalian Commodity Exchange. All available commodities had deal prices that were marginally higher but still able to fetch good end figures suggesting market acceptance.
Interestingly, several warehouses that had offered materials at lower prices on Tuesday did not participate in the auction today.
“We noticed an emerging trend lately. Customers are purchasing based on immediate needs rather than stockpiling excess inventory. We are in a situation that compels us to place continuous small-scale orders due to limited import cargoes. As this continues, prices are likely to persist at raised levels in the coming days,” 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