13 August 2024 - Shenhua's coal-based PP and PE Auction Results
Chinese bidders showed heightened enthusiasm for the auction platform to secure additional coal-based PP and PE cargoes, driven by a robust rebound on the Dalian Commodity Exchange. This surge in interest led Shenhua to record a significant number of transactions during today’s auction session
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 13 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 |
1216 |
7580 |
$934 |
7620-7730 |
$939-953 |
93.5% |
|
PP Thinwall |
- |
- |
- |
- |
- |
- |
- |
|
PPBC |
450 |
443 |
7550 |
$931 |
7560-7880 |
$932-971 |
98.4% |
|
LLDPE |
1100 |
1100 |
8000 |
$986 |
8040-8220 |
$991-1013 |
100.0% |
|
LDPE heavy duty |
- |
- |
- |
- |
- |
- |
- |
|
HDPE |
100 |
0 |
8050 |
$992 |
- |
- |
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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Chinese bidders showed heightened enthusiasm for the auction platform to secure additional coal-based PP and PE cargoes, driven by a robust rebound on the Dalian Commodity Exchange. This surge in interest led Shenhua to record a significant number of transactions during today’s auction session, though the producer did provide a CNY20/ton discount on LLDPE cargoes to smoothen the sales process.
Market sources indicate that the recent price hikes in the domestic spot market have further spurred PP buyers to seek coal-based cargoes from the auction platform as a cost-saving measure.
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