29 May 2024 - Shenhua's coal-based PP and PE Auction Results
Most concluded deals were from buyers who wanted to replenish inventories as dealt prices today were slightly softer by CNY10 – 20/ton than on Tuesday
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 29 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 |
1510 |
1460 |
7500 |
$915 |
7550-7840 |
$922-957 |
96.7% |
|
PP Fiber |
- |
- |
- |
- |
- |
- |
- |
|
PPBC |
335 |
335 |
7750 |
$946 |
7780-8130 |
$950-992 |
100.0% |
|
LLDPE |
1000 |
999 |
8400 |
$1025 |
8400-8540 |
$1025-1042 |
99.9% |
|
LDPE heavy duty |
- |
- |
- |
- |
- |
- |
- |
|
HDPE |
200 |
0 |
8350 |
$1019 |
- |
- |
0.0% |
|
*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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The Shenhua Auction Platform continues to show impressive overall performance, with only a slight decline in concluded deals for homo-PP. However, this trend did not extend to HDPE, which saw no bids today after strong activity in the previous two days.
Most concluded deals were from buyers who wanted to replenish inventories as dealt prices today were slightly softer by CNY10 – 20/ton than on Tuesday on the high-end pricing range. It was apparent buying appetite has also gone gradually softer.
One Chinese buyer, who proceeded cautiously, remarked, "As these past days it was hard to source for cheaper cargoes, so we decided to buy some essentials as our inventory has reached critical levels."
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