04 June 2024 - Shenhua's coal-based PP and PE Auction Results
Shenhua Auction Platform continued to face multiple challenges in attracting deals on the second day of the week as futures contracts on the Dalian Commodity Exchange and crude oil extended the bear run.
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 04 June 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 |
1316 |
880 |
7450 |
$910 |
7490-7750 |
$914-946 |
66.9% |
|
PP Fiber |
- |
- |
- |
- |
- |
- |
- |
|
PPBC |
- |
- |
- |
- |
- |
- |
- |
|
LLDPE |
700 |
517 |
8300 |
$1013 |
8300-8450 |
$1013-1031 |
73.9% |
|
LDPE heavy duty |
- |
- |
- |
- |
- |
- |
- |
|
HDPE |
250 |
86 |
8300 |
$1013 |
8300-8500 |
$1013-1038 |
34.4% |
|
*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 continued to face multiple challenges in attracting deals on the second day of the week as futures contracts on the Dalian Commodity Exchange and crude oil extended the bear run. Bidders become highly cautious in their purchases despite the CNY50/ton discount given by Shenhua to entice demand.
“Customers are buying while waiting for more discounts to emerge at the same time. The market needs fresh stimulation. So far, every supplier is leaning toward the shipping issue to support their firm pricing decision,” a market source 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