13 June 2024 - Shenhua's coal-based PP and PE Auction Results
The Shenhua Auction Platform ended today’s session on a mixed note. While homo-PP achieved satisfactory number of transactions, deals for LLDPE fell sharply compared to the previous day.
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 13 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 |
1416 |
1366 |
7500 |
$915 |
7560-7820 |
$923-955 |
96.5% |
|
PP Thinwall |
- |
- |
- |
- |
- |
- |
- |
|
PPBC |
350 |
0 |
7850 |
$958 |
- |
- |
0.0% |
|
LLDPE |
800 |
510 |
8300 |
$1013 |
8360-8480 |
$1020-1035 |
63.8% |
|
LDPE heavy duty |
- |
- |
- |
- |
- |
- |
- |
|
HDPE |
300 |
33 |
8300 |
$1013 |
8300 |
$1013 |
11.0% |
|
*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 ended today’s session on a mixed note. While homo-PP achieved a satisfactory number of transactions, deals for LLDPE fell sharply compared to the previous day.
Market sources attributed to the bifurcation to the possibility that buyers are seeking only more attractive cargoes than the domestic spot market. Therefore, less attractive coal-based LLDPE film parcels on the Shenhua Auction Platform today failed to appeal to price-sensitive customers.
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