02 July 2024 - Shenhua's coal-based PP and PE Auction Results
Interestingly, the coal-based producer opted for a more conservative stance by maintaining auction prices stable regardless of the rising futures contract on the Dalian Commodity Exchange.
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 02 July 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 |
1650 |
1600 |
7550 |
$919 |
7620-7860 |
$928-957 |
97.0% |
|
PP Thinwall |
100 |
0 |
7750 |
$943 |
- |
- |
0.0% |
|
PPBC |
558 |
400 |
7300 |
$887 |
7300-8290 |
$889-1009 |
71.7% |
|
LLDPE |
800 |
800 |
8300 |
$1010 |
8310-8470 |
$1012-1031 |
100.0% |
|
LDPE heavy duty |
- |
- |
- |
- |
- |
- |
- |
|
HDPE |
100 |
0 |
8400 |
$1023 |
- |
- |
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 concluded today’s auction session with a strong result albeit lower auction volume compared to the previous session. Interestingly, the coal-based producer opted for a more conservative stance by maintaining auction prices stable regardless of the rising futures contract on the Dalian Commodity Exchange.
On the demand side, buyers are attracted to the more competitively priced coal-based cargoes on the Shenhua Auction Platform, following the recent upward price adjustment in the spot market. However, inadequate finished goods orders are prompting buyers to adopt cautious purchasing strategies to mitigate inventory risks.
Background:
Shenhua Baotou Coal Chemical Co, the largest coal-based polyolefins producer in China, operates through four subsidiaries: 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 boasts an annual production capacity of 2.65 million tons of PP, 750,000 tons of HDPE/LLDPE, and 570,000 tons of LDPE.
Active in spot trading, Shenhua Baotou also conducts daily auctions for its cargoes from 10 AM - 12 PM on its dedicated online platform, available at https://www.e-chnenergy.com.
Written by: Kat Yun Yun
Edited by: Rochelle Nguyen