05 August 2024 - Shenhua's coal-based PP and PE Auction Results
Trading on the Shenhua Auction Platform faced significant disruptions at the start of the week, beset by a confluence of adverse factors. The sharp appreciation of the Yuan and the declining futures contracts on the Dalian Commodity Exchange dampened market activity, highlighting a precarious sentiment among buyers.
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 05 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 |
1300 |
663 |
7510 |
$931 |
7510-7690 |
$931-953 |
51.0% |
|
PP Thinwall |
- |
- |
- |
- |
- |
- |
- |
|
PPBC |
250 |
133 |
7450 |
$923 |
7450-7850 |
$923-973 |
53.2% |
|
LLDPE |
800 |
375 |
8070 |
$1000 |
8180-8290 |
$1014-1027 |
46.9% |
|
LDPE heavy duty |
- |
- |
- |
- |
- |
- |
- |
|
HDPE |
100 |
0 |
8050 |
$998 |
- |
- |
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. |
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Trading on the Shenhua Auction Platform faced significant disruptions at the start of the week, beset by a confluence of adverse factors. The sharp appreciation of the Yuan and the declining futures contracts on the Dalian Commodity Exchange dampened market activity, highlighting a precarious sentiment among buyers.
Despite a CNY 20/ton discount offered by the coal-based producer to stimulate interest, buyers exhibited a marked reluctance to commit to purchases. The tepid response underscored the pervasive uncertainty and cautiousness permeating the market. Consequently, the auction session concluded with a dismal outcome, with only about 50% of the available quantity sold.
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