22 August 2024 - Shenhua's coal-based PP and PE Auction Results
Shenhua’s auction session concluded on a seemingly positive note today, as buyers showed interest in the reduced prices. However, this response appears more reactionary than indicative of genuine market strength.
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 22 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 |
1499 |
1246 |
7350 |
$912 |
7350-7750 |
$912-962 |
83.1% |
|
PP Thinwall |
- |
- |
- |
- |
- |
- |
- |
|
PPBC |
430 |
191 |
7580 |
$941 |
7580-7780 |
$941-966 |
44.4% |
|
LLDPE |
900 |
900 |
8060 |
$1000 |
8060-8110 |
$1000-1007 |
100.0% |
|
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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Shenhua’s auction session concluded on a seemingly positive note today, as buyers showed interest in the reduced prices. However, this response appears more reactionary than indicative of genuine market strength. The LLDPE auction price saw a modest drop of CNY 30/ton, while homo-PP decreased by CNY 130/ton, despite a rebound in the futures market—a sign that the producer may be struggling to stimulate demand.
Buyers remain highly price-sensitive, reflecting deep-seated concerns about the uncertain market outlook and persistently weak demand for finished goods.
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