23 May 2024 - Shenhua's coal-based PP and PE Auction Results
In a bold move, Shenhua decided to lift auction prices by CNY50/ton for homo-PP and CNY30/ton for LLDPE from the previous session against all the odds.
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 23 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 |
1030 |
372 |
7550 |
$923 |
7560-7730 |
$924-945 |
36.1% |
|
PP Fiber |
- |
- |
- |
- |
- |
- |
- |
|
PPBC |
400 |
150 |
8050 |
$984 |
8100-8110 |
$990-991 |
37.5% |
|
LLDPE |
650 |
100 |
8450 |
$1033 |
8450 |
$1033 |
15.4% |
|
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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In a bold move, Shenhua decided to lift auction prices by CNY50/ton for homo-PP and CNY30/ton for LLDPE from the previous session against all the odds. The decision, unfortunately, anchored trading sentiment and caused a drastic drop in the number of transactions.
Although the coal-based producer claimed to have reduced sales pressure, the continuous weakening Dalian Commodity Exchange did not provide the support needed to achieve the price hike targets. Market sources believe that downward adjustment is necessary in the coming sessions to stimulate demand.
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