30 May 2024 - Shenhua's coal-based PP and PE Auction Results
Trading sentiment on the Shenhua Auction Platform remained strong toward the month-end, driven by fear over the new carbon emission policies that target the coal-based petrochemical sector.
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 30 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 |
1200 |
1170 |
7500 |
$915 |
7580-7940 |
$925-969 |
97.5% |
|
PP Fiber |
- |
- |
- |
- |
- |
- |
- |
|
PPBC |
80 |
80 |
8050 |
$983 |
8200-8210 |
$1001-1002 |
100.0% |
|
LLDPE |
900 |
900 |
8450 |
$1031 |
8520-8560 |
$1040-1045 |
100.0% |
|
LDPE heavy duty |
- |
- |
- |
- |
- |
- |
- |
|
HDPE |
200 |
198 |
8300 |
$1013 |
8300 |
$1013 |
99.0% |
|
*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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Trading sentiment on the Shenhua Auction Platform remained strong toward the month-end, driven by fear over the new carbon emission policies that target the coal-based petrochemical sector. A slew of new restrictions and equipment upgrade requirements means supply might tighten moving forward.
Supporting the robust trading activities was also the stable pricing and reduced availability on the background of surging futures contracts on the Dalian Commodity Exchange.
Looking ahead, there is anticipation of firmness in offers in the coming month as well. A local trader remarked, “It's been a bit of a rollercoaster but looks like we're on track. Customers keep placing those small orders, which helps us keep things moving. Let's see what the next month has to offer."
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