19 July 2024 - Shenhua's coal-based PP and PE Auction Results
Shenhua concluded the final auction session of the week on a soft note despite escalated efforts to stimulate buying interest. Chinese bidders remained cautious, prioritizing concerns about the bleak near-term outlook and declining futures trading over the seemingly attractive auction cargo.
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 19 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 |
1700 |
1142 |
7550 |
$919 |
7550-7730 |
$919-41 |
67.2% |
|
PP Thinwall |
60 |
49 |
7650 |
$931 |
7650 |
$931 |
81.7% |
|
PPBC |
700 |
336 |
7500 |
$913 |
7500-8050 |
$913-980 |
48.0% |
|
LLDPE |
1050 |
825 |
8050 |
$980 |
8050-8370 |
$980-1019 |
78.6% |
|
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. |
|||||||
Shenhua concluded the final auction session of the week on a soft note despite escalated efforts to stimulate buying interest. Chinese bidders remained cautious, prioritizing concerns about the bleak near-term outlook and declining futures trading over the seemingly attractive auction cargo.
In a bid to ignite market activity, Shenhua slashed the auction price for LLDPE film by CNY 250/ton ($34/ton) compared to the previous day. However, this significant price reduction failed to secure full deals, highlighting a pervasive lack of confidence among buyers.
Market participants indicated that polyolefin prices are poised to remain in a range-bound trend in the near term. This stagnation is expected to persist until preparations for year-end demand commence, which is anticipated to occur by late August.
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