28 August 2024 - Shenhua's coal-based PP and PE Auction Results
As the rally on the Dalian Commodity Exchange loses steam, Chinese bidders have pulled back from the Shenhua Auction Platform to reassess the near-term outlook, leading to a significant drop in transactions.
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 28 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 |
1150 |
700 |
7510 |
$932 |
7510-7750 |
$932-962 |
60.9% |
|
PPBC |
250 |
200 |
7680 |
$953 |
7700-7720 |
$956-958 |
80.0% |
|
LLDPE |
960 |
667 |
8000 |
$993 |
8000-8300 |
$993-1030 |
69.5% |
|
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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As the rally on the Dalian Commodity Exchange loses steam, Chinese bidders have pulled back from the Shenhua Auction Platform to reassess the near-term outlook, leading to a significant drop in transactions.
Market sources indicate that most buyers have already completed their weekly purchases and are expected to stay on the sidelines for the rest of the week. However, there is a cautious optimism that demand in September may continue to improve.
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