29 July 2024 - Shenhua's coal-based PP and PE Auction Results
Market sources attributed the large discrepancies to the mixed sentiment on the Dalian Commodity Exchange and the tighter supply condition for PP that stemmed from a series of production disruptions in recent weeks.
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 29 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 |
2040 |
1842 |
7570 |
$923 |
7570-7650 |
$923-932 |
90.3% |
|
PP Thinwall |
- |
- |
- |
- |
- |
- |
- |
|
PPBC |
446 |
34 |
7500 |
$914 |
7880 |
$961 |
7.6% |
|
LLDPE |
1150 |
260 |
8080 |
$985 |
8220-8270 |
$1002-1008 |
17.9% |
|
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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The Shenhua Auction Platform concluded the first auction session of the week on a mixed note with homo-PP fetching a strong sales result of 90.3% of the available quantity while LLDPE not exceeding 18%.
Market sources attributed the large discrepancies to the mixed sentiment on the Dalian Commodity Exchange and the tighter supply condition for PP that stemmed from a series of production disruptions in recent weeks.
“The PE sector is hit by the abrupt rise in availability. Pressure might ease once local traders depleted the on-hand stocks,” said, a market source.
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