24 June 2024 - Shenhua's coal-based PP and PE Auction Results
Trading sentiment on the Shenhua Auction Platform remained dwindling at the start of the week and despite the substantial drop in auction volume for homo-PP, the coal-based producer failed to deplete all the available quantities.
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 24 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 |
1880 |
1647 |
7550 |
$920 |
7600-7750 |
$926-945 |
87.6% |
|
PP Thinwall |
- |
- |
- |
- |
- |
- |
- |
|
PPBC |
401 |
168 |
7660 |
$934 |
7680-8050 |
$936-981 |
41.2% |
|
LLDPE |
1200 |
430 |
8300 |
$1012 |
8400-8410 |
$1024-1025 |
35.8% |
|
LDPE heavy duty |
- |
- |
- |
- |
- |
- |
- |
|
HDPE |
200 |
34 |
8350 |
$1012 |
8350 |
$1018 |
17.0% |
|
*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 dwindling at the start of the week and despite the substantial drop in auction volume for homo-PP, the coal-based producer failed to deplete all the available quantities. The LLDPE sector had it worse, with only 35.8% of the total auction volume sold.
Attempts to attract buying interest by reducing auction prices by CNY80/ton on homo-PP and CNY140/ton on LLDPE also yielded disappointing responses.
Market participants have attributed this weakness to the sharp declines in futures trading on the Dalian Commodity Exchange and generally softer local spot prices. Many buyers adopted a wait-and-see approach, anticipating further price reductions ahead.
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