May 18, 2024 11:37 p.m.

15 May 2024 - Shenhua's coal-based PP and PE Auction Results

Today’s session on the Shenhua Auction Platform started to pick up steam for all three auctioned commodities with concluded deals in volume being slightly higher than Tuesday.

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Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 15 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

1347

7330

$898

7340-7660

$900-939

92.9%

PP Fiber

-

-

-

-

-

-

-

PPBC

550

450

7650

$938

7850-7970

$962-977

81.8%

LLDPE

950

900

8300

$1017

8310-8450

$1019-1036

94.7%

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.

 

Today’s session on the Shenhua Auction Platform started to pick up steam for all three auctioned commodities with concluded deals in volume being slightly higher than Tuesday. Dealt prices for PPBC rose by CNY30/ton, while homo-PP and LLDPE prices decreased by CNY10/ton. 

Despite the limited local supply, converters seemed to have been less inclined to procure materials, leading auction deals to not fully reflect actual market demand. Transactions primarily stemmed from necessity-based purchases and a preference for more affordable goods.

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

 

Country

China