17 June 2024 - Shenhua's coal-based PP and PE Auction Results
While coal-based homo-PP cargoes achieved a relatively satisfactory number of transactions, the demand for LLDPE was battered by the weak futures contracts on the Dalian Commodity Exchange and the unattractive pricing set by the coal-based producer.
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 17 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 |
1716 |
1260 |
7500 |
$914 |
7540-7840 |
$919-956 |
73.4% |
|
PP Thinwall |
- |
- |
- |
- |
- |
- |
- |
|
PPBC |
350 |
0 |
7800 |
$951 |
- |
- |
0.0% |
|
LLDPE |
900 |
65 |
8440 |
$1029 |
8440-8450 |
$1029-1030 |
7.2% |
|
LDPE heavy duty |
- |
- |
- |
- |
- |
- |
- |
|
HDPE |
100 |
99 |
8400 |
$1024 |
8400 |
$1024 |
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. |
|||||||
Shenhua concluded the first auction session of the week on a mixed note. While coal-based homo-PP cargoes achieved a relatively satisfactory number of transactions, the demand for LLDPE was battered by the weak futures contracts on the Dalian Commodity Exchange and the unattractive pricing set by the coal-based producer.
According to market sources, Shenhua Yulin Energy recently shut its 300,000 tons/year coal-based PP units from 4 – 11 June for a brief maintenance, which impacted regular customers. Buyers are sourcing the needed cargoes to fill in the supply shortfall, resulting in better demand for PP at the moment.
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