21 May 2024 - Shenhua's coal-based PP and PE Auction Results
While the auction prices for both homo-PP and LLDPE were up by CNY50/ton, there was a noticeable discrepancy in the auction results between both grades.
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 21 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 |
1150 |
1096 |
7550 |
$923 |
7550-7770 |
$923-950 |
95.3% |
|
PP Fiber |
- |
- |
- |
- |
- |
- |
- |
|
PPBC |
300 |
200 |
8050 |
$984 |
8050-8140 |
$984-995 |
66.7% |
|
LLDPE |
950 |
537 |
8450 |
$1033 |
8480-8510 |
$1037-1040 |
56.5% |
|
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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Concluded deals and dealt prices for homo-PP and LLDPE on the Shenhua Auction Platform are relatively lower today compared to Monday, directly influenced by the downturn in the futures market on the Dalian Commodity Exchange (DCE) this morning.
While the auction prices for both homo-PP and LLDPE were up by CNY50/ton, there was a noticeable discrepancy in the auction results between both grades. Sources attributed the weaker auction volume for the coal-based LLDPE cargoes to the more lethargic futures trading of this grade on the Dalian Commodity Exchange.
Meanwhile, BOPP sheet/film converters reported an uptick in orders. A Chinese trader remarked, “BOPP end-product orders typically respond more closely to the futures and spot price movement. The recent uptick in DCE is encouraging some BOPP purchases, leading to a comparatively better buying sentiment for PP over PE. Yet, the lingering question remains: how long can this momentum endure?”
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