18 July 2024 - Shenhua's coal-based PP and PE Auction Results
Trading sentiment on the Shenhua Auction Platform weakened slightly from the previous session, influenced by the continued decline on the Dalian Commodity Exchange. The coal-based producer's attempt to attract buyers by reducing auction prices by CNY 50/ton fell short of expectations.
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 18 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 |
1950 |
1510 |
7550 |
$920 |
7550-7720 |
$920-941 |
77.4% |
|
PP Thinwall |
50 |
50 |
7650 |
$932 |
7710-7720 |
$940-941 |
100.0% |
|
PPBC |
500 |
50 |
7500 |
$914 |
8050 |
$981 |
10.0% |
|
LLDPE |
900 |
743 |
8300 |
$1012 |
8310-8370 |
$1013-1020 |
82.6% |
|
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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Trading sentiment on the Shenhua Auction Platform weakened slightly from the previous session, influenced by the continued decline on the Dalian Commodity Exchange. The coal-based producer's attempt to attract buyers by reducing auction prices by CNY 50/ton fell short of expectations.
According to CommoPlast data, deal prices dropped by CNY 100/ton for homo-PP and CNY 30/ton for LLDPE. Market participants have voiced their lack of confidence in the near-term outlook, anticipating further price reductions. This sentiment underscores the market's growing uncertainty and the challenges faced by producers in stabilizing prices.
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