02 September 2024 - Shenhua's coal-based PP and PE Auction Results
The Shenhua Auction Platform commenced the first trading session of September with lackluster results, reflecting the broader sentiment in the domestic spot market. Chinese bidders largely retreated to the sidelines, seeking to gauge the effects of declining crude oil prices and rising local inventories.
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 02 September 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 |
1820 |
872 |
7500 |
$935 |
7500-7770 |
$935-968 |
47.9% |
|
PPBC |
100 |
0 |
7720 |
$961 |
- |
- |
0.0% |
|
LLDPE |
650 |
245 |
7950 |
$991 |
7950-8130 |
$991-1013 |
37.7% |
|
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 commenced the first trading session of September with lackluster results, reflecting the broader sentiment in the domestic spot market. Chinese bidders largely retreated to the sidelines, seeking to gauge the effects of declining crude oil prices and rising local inventories. The sharp downturn on the Dalian Commodity Exchange exacerbated the bearish outlook.
Even with the availability of more competitively priced coal-based PP cargoes, Chinese buyers showed little urgency, anticipating more favorable deals in the near term.
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