09 July 2024 - Shenhua's coal-based PP and PE Auction Results
The Dalian Commodity Exchange extended its weakening trend for the fourth consecutive trading session on 09 July. Notably, LLDPE futures experienced steeper declines compared to PP
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 09 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 |
1496 |
7550 |
$919 |
7560-7760 |
$920-945 |
89.8% |
|
PP Thinwall |
100 |
0 |
7750 |
$943 |
- |
- |
0.0% |
|
PPBC |
547 |
215 |
7750 |
$907 |
7900-8200 |
$962-998 |
39.3% |
|
LLDPE |
800 |
600 |
8250 |
$1004 |
8290-8420 |
$1009-1025 |
75.0% |
|
LDPE heavy duty |
- |
- |
- |
- |
- |
- |
- |
|
HDPE |
- |
- |
- |
- |
- |
- |
- |
|
*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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On the Shenhua Auction Platform, performance declined significantly compared to the previous trading day. This was primarily due to persistently falling futures contracts, which discouraged buyers from proceeding with purchases.
The Dalian Commodity Exchange extended its weakening trend for the fourth consecutive trading session on 09 July. Notably, LLDPE futures experienced steeper declines compared to PP, which was immediately reflected in the auction results on the Shenhua Auction Platform.
In response, the coal-based producer offered a further reduction of CNY 20-40/ton on deal prices to facilitate the sales process. However, uptake rates remained below expectations despite these price adjustments.
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