27 May 2024 - Shenhua's coal-based PP and PE Auction Results
Despite the continued rising futures contracts on the Dalian Commodity Exchange, Shenhua decided to roll over deal prices from the previous session, except LLDPE gaining just CNY10/ton
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 27 May 2024. The following table shows 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 |
1850 |
1843 |
7500 |
$915 |
7500-7800 |
$915-952 |
99.6% |
|
PP Fiber |
- |
- |
- |
- |
- |
- |
- |
|
PPBC |
650 |
650 |
7700 |
$940 |
7770-8120 |
$948-991 |
100.0% |
|
LLDPE |
950 |
950 |
8400 |
$1025 |
8400-8520 |
$1025-1040 |
100.0% |
|
LDPE heavy duty |
- |
- |
- |
- |
- |
- |
- |
|
HDPE |
100 |
100 |
8200 |
$1001 |
8430-8440 |
$1029-1030 |
100.0% |
|
*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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Shenhua Auction Platform kickstarted the week with a bang as coal-based PE and PP block copolymer achieved 100% deals while homo-PP came very close, missing the mark by just 0.4%. Despite the continued rising futures contracts on the Dalian Commodity Exchange, Shenhua decided to roll over deal prices from the previous session, except LLDPE gaining just CNY10/ton, which became highly appealing to buyers.
“Even spot customers are flocking to the auction platform after a CNY50/ton hike in spot PP and PE prices this morning. Traders like us prefer to do back-to-back business at the moment since the price risks are too high,” a local trader commented.
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