17 May 2024 - Shenhua's coal-based PP and PE Auction Results
The bidding sessions on the Shenhua Auction Platform produced commendable results after a stellar performance of PP and LLDPE futures on the Dalian Commodity Exchange (DCE) during the overnight session.
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 17 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 |
1590 |
1570 |
7350 |
$900 |
7400-7730 |
$906-946 |
98.7% |
|
PP Fiber |
- |
- |
- |
- |
- |
- |
- |
|
PPBC |
390 |
390 |
7900 |
$967 |
7900-8000 |
$967-979 |
100.0% |
|
LLDPE |
950 |
900 |
8300 |
$1016 |
8330-8500 |
$1020-1040 |
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. |
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The bidding sessions on the Shenhua Auction Platform produced commendable results after a stellar performance of PP and LLDPE futures on the Dalian Commodity Exchange (DCE) during the overnight session. Even the deal prices for all three auctioned commodities were higher than on Thursday.
"It was completely unexpected for the futures market to spike as it did last night. We, however, had to place bids today to cover our basic needs, despite today's auction prices being higher than yesterday's," remarked a local buyer.
Meanwhile, a significant portion of the buyers comprised arbitrage traders who were quick to capitalise on the substantial price gap, which had widened to CNY 150 – 200/ton, between the DCE and the auction cargoes. This price differential created a lucrative arbitrage opportunity, allowing the traders to profit from the price discrepancies in the market.
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