08 July 2024 - Shenhua's coal-based PP and PE Auction Results
Amid the ongoing weakening trend on the Dalian Commodity Exchange, Shenhua has adopted proactive measures to stimulate buying activities on its Auction Platform.
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 08 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 |
1666 |
1509 |
7550 |
$919 |
7560-7800 |
$920-949 |
90.6% |
|
PP Thinwall |
100 |
0 |
7750 |
$943 |
- |
- |
0.0% |
|
PPBC |
500 |
77 |
7750 |
$958 |
7870-8000 |
$958-974 |
15.4% |
|
LLDPE |
800 |
586 |
8250 |
$1004 |
8290-8440 |
$1009-1027 |
73.3% |
|
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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Amid the ongoing weakening trend on the Dalian Commodity Exchange, Shenhua has adopted proactive measures to stimulate buying activities on its Auction Platform. The latest auction session concluded with satisfactory results, with reductions in deal prices of CNY 70/ton on LLDPE film and CNY 20-30/ton on homo-PP.
Despite the downturn in the domestic spot market, the attractiveness of coal-based cargoes on the Shenhua Auction Platform continues to capture buyer interest. Highly price-sensitive customers are inclined to source cargoes that align with their cost requirements.
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