29 August 2024 - Shenhua's coal-based PP and PE Auction Results
The Shenhua Auction Platform wrapped up today’s session with what could be described as a lukewarm outcome. While there was a noticeable uptick in buyer activity, spurred by the recent rebound on the Dalian Commodity Exchange, the overall mood remained cautious.
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 29 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 |
866 |
7500 |
$933 |
7540-7760 |
$938-966 |
75.3% |
|
PPBC |
200 |
128 |
7680 |
$956 |
7680-7710 |
$956-960 |
64.0% |
|
LLDPE |
950 |
802 |
7950 |
$990 |
7950-8130 |
$990-1012 |
84.4% |
|
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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The Shenhua Auction Platform wrapped up today’s session with what could be described as a lukewarm outcome. While there was a noticeable uptick in buyer activity, spurred by the recent rebound on the Dalian Commodity Exchange, the overall mood remained cautious. Buyers returned to the market for minimal replenishment, yet the producer’s struggle to fully clear the auction volume underscores a deeper reluctance among Chinese buyers to commit to larger purchases in the absence of significant discounts.
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