Jun 13, 2024 5:04 a.m.

11 June 2024 - Shenhua's coal-based PP and PE Auction Results

Chinese bidders returned from the long weekend break to find auction prices for most of the grades unchanged from the previous week, which piqued some buying interest.

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Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 11 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

1816

1766

7500

$915

7530-7820

$919-955

97.2%

PP Thinwall

-

-

-

-

-

-

-

PPBC

150

50

7900

$964

8350

$1019

33.3%

LLDPE

1100

1099

8300

$1013

8300-8480

$1013-1035

99.9%

LDPE heavy duty

-

-

-

-

-

-

-

HDPE

300

100

8300

$1013

8300

$1013

33.3%

*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.

 

Shenhua concluded the first auction session of the week on a satisfactory note, especially for homo-PP and LLDPE. Chinese bidders returned from the long weekend break to find auction prices for most of the grades unchanged from the previous week, which piqued some buying interest. However, the overall demand condition remained soft, market sources said.

“It is too early to judge the post-holiday demand condition. Buyers are still taking time to assess the market outlook. Still, we do expect our customers to return for restocking soon,” said, a trader.

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

 

Country

China