26 August 2024 - Shenhua's coal-based PP and PE Auction Results
On the pricing front, Shenhua managed to raise the auction price for homo-PP by CNY 40/ton, bolstered by a rebound in futures contracts on the Dalian Commodity Exchange. However, the auction price for LLDPE slipped by CNY 60/ton compared to the previous session, reflecting mixed sentiment in the market.
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 26 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 |
950 |
900 |
7480 |
$930 |
7480-7750 |
$930-963 |
94.7% |
|
PP Thinwall |
- |
- |
- |
- |
- |
- |
- |
|
PPBC |
210 |
210 |
7650 |
$951 |
7690-7780 |
$956-967 |
100.0% |
|
LLDPE |
1050 |
983 |
8000 |
$994 |
8000-8100 |
$994-1007 |
93.6% |
|
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 Auction Platform kicked off the week with robust results, concluding its first auction session with over 90% of the available quantity transacted. Notably, homo-PP attracted a higher number of deals, though this was partially due to the reduced auction volume for the grade.
On the pricing front, Shenhua managed to raise the auction price for homo-PP by CNY 40/ton, bolstered by a rebound in futures contracts on the Dalian Commodity Exchange. However, the auction price for LLDPE slipped by CNY 60/ton compared to the previous session, reflecting mixed sentiment in the market.
As the month-end approaches, Shenhua is anticipated to reduce its auction volume, though market participants appear largely unconcerned about the supply outlook, citing ample availability in the domestic spot market.
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