CommoPlast | Article - 28 June 2024 - Shenhua's coal-based PP and PE Auction Results

Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 28 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 %
Product	Auction Volume	Deal Volume	CNY/ton	USD/ton	CNY/ton	USD/ton	Deal %
*Combined and reported by CommoPlast*
Homo-PP	1290	1240	7630	$929	7630-7800	$929-949	96.1%
PP Thinwall	-	-	-	-	-	-	-
PPBC	-	-	-	-	-	-	-
LLDPE	1100	1100	8380	$1020	8420-8470	$1025-1031	100.0%
LDPE heavy duty	-	-	-	-	-	-	-
HDPE	300	300	8100	$986	8100-8250	$986-1004	100.0%
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 final auction of the month on a strong note, supported by the strong futures contract on the Dalian Commodity Exchange and the reduced auction quantities. Sources expected the trend to persist in the coming week as buyers would need to make weekly purchases to sustain their productions.

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