13 May 2024 - Shenhua's coal-based PP and PE Auction Results
Buyers primarily procured based on necessity and exercised caution due to the softened crude benchmarks. The market is expected to stay stagnant as it heads into the traditional slow season starting in June.
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 13 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 |
1420 |
1212 |
7400 |
$906 |
7400-7630 |
$906-934 |
85.4% |
|
PP Fiber |
- |
- |
- |
- |
- |
- |
- |
|
PPBC |
400 |
333 |
7600 |
$930 |
7600-7900 |
$930-967 |
83.3% |
|
LLDPE |
900 |
377 |
8300 |
$1016 |
8300-8450 |
$1016-1034 |
41.9% |
|
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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At the beginning of the week, deals on the Shenhua Auction Platform saw marginal decreases in volume for homo-PP and LLDPE, while PPBC slightly increased compared to Friday.
Buyers primarily procured based on necessity and exercised caution due to the softened crude benchmarks. The market is expected to stay stagnant as it heads into the traditional slow season starting in June.
A Chinese seller commented, “Buyers are sticking to essential purchases only, negotiating over prices or settling for cheaper alternatives, which means major price increases are unlikely for now.”
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