01 August 2024 - Shenhua's coal-based PP and PE Auction Results
For the second consecutive day, trading sentiment on the Shenhua Auction Platform remained robust, bolstered by resilient futures contracts on the Dalian Commodity Exchange. Supporting the strong auction results for both PP and PE was the coal-based producer's decision to keep auction prices stable from the previous day, despite rising futures and spot markets.
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 01 August 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 |
1897 |
1847 |
7480 |
$916 |
7520-7730 |
$920-946 |
97.4% |
|
PP Thinwall |
- |
- |
- |
- |
- |
- |
- |
|
PPBC |
300 |
184 |
7430 |
$909 |
7450-7900 |
$912-967 |
61.3% |
|
LLDPE |
900 |
900 |
8050 |
$985 |
8090-8260 |
$990-1011 |
100.0% |
|
LDPE heavy duty |
- |
- |
- |
- |
- |
- |
- |
|
HDPE |
100 |
0 |
8050 |
$985 |
- |
- |
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. |
|||||||
For the second consecutive day, trading sentiment on the Shenhua Auction Platform remained robust, bolstered by resilient futures contracts on the Dalian Commodity Exchange. Supporting the strong auction results for both PP and PE was the coal-based producer's decision to keep auction prices stable from the previous day, despite rising futures and spot markets.
This strategic move to maintain stable prices, shrugging off broader market trends, has been pivotal. On average, coal-based PP and PE cargoes on the Shenhua Auction Platform are trading at about CNY 50-100/ton lower than the domestic spot market, making these auctioned cargoes significantly more attractive to buyers.
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