14 May 2024 - Shenhua's coal-based PP and PE Auction Results
Replenishments were driven by essential needs, with auctioned cargoes remaining competitively priced at around CNY100/ton below local spot prices, prompting customers to restock.
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 14 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 |
1450 |
1210 |
7330 |
$896 |
7330-7650 |
$896-935 |
83.4% |
|
PP Fiber |
- |
- |
- |
- |
- |
- |
- |
|
PPBC |
550 |
412 |
7650 |
$935 |
7850-7940 |
$960-971 |
74.9% |
|
LLDPE |
900 |
856 |
8300 |
$1015 |
8310-8460 |
$1016-1034 |
95.1% |
|
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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The recent bidding session on the Shenhua Auction Platform saw increased activity, especially for PPBC and LLDPE, with relatively higher deal volumes and prices indicating market acceptance.
Replenishments were driven by essential needs, with auctioned cargoes remaining competitively priced at around CNY100/ton below local spot prices, prompting customers to restock.
Addressing the current state of affairs, a market participant remarked, “It is worth noting that domestic market deals continue to lag, with a particular concern surrounding the accumulation of an additional 5,000 tons in total domestic inventory as of 14 May 2024.”
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