27 June 2024 - Shenhua's coal-based PP and PE Auction Results
As the end of the month approaches, many customers are assessing potential market directions for July. Despite this uncertainty, discounted cargoes continue to attract need-based purchases
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 27 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 |
1900 |
1850 |
7500 |
$913 |
7560-7780 |
$920-947 |
97.4% |
|
PP Thinwall |
100 |
100 |
7600 |
$925 |
7610 |
$926 |
100.0% |
|
PPBC |
658 |
303 |
7450 |
$907 |
8200-8240 |
$998-1003 |
46.0% |
|
LLDPE |
1200 |
863 |
8250 |
$1004 |
8300-8430 |
$1010-1026 |
71.9% |
|
LDPE heavy duty |
- |
- |
- |
- |
- |
- |
- |
|
HDPE |
300 |
0 |
8200 |
$998 |
- |
- |
0.0% |
|
*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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Shenhua continued to secure a satisfactory number of transactions for their coal-based PP and PE cargoes during today’s auction session. To offset the lack of support from the Dalian Commodity Exchange, the producer reduced auction prices by CNY 50/ton for homo-PP and CNY 110/ton for LLDPE.
As the end of the month approaches, many customers are assessing potential market directions for July. Despite this uncertainty, discounted cargoes continue to attract need-based purchases as customers have been maintaining minimum on-hand inventory.
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