04 September 2024 - Shenhua's coal-based PP and PE Auction Results
The Shenhua Auction Platform concluded today’s session with disappointing results, largely due to the producer's bold decision to maintain firm auction prices despite declining crude oil prices and a weak futures market.
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 04 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 |
1020 |
293 |
7400 |
$921 |
7400-7700 |
$921-958 |
28.7% |
|
PPBC |
150 |
0 |
7700 |
$958 |
- |
- |
0.0% |
|
LLDPE |
650 |
264 |
7850 |
$977 |
7920-8060 |
$986-1003 |
40.6% |
|
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 concluded today’s session with disappointing results, largely due to the producer's bold decision to maintain firm auction prices despite declining crude oil prices and a weak futures market. Buyers largely retreated, wary of the continued downtrend on the Dalian Commodity Exchange and its potential negative impact on both the auction platform and the broader domestic spot market.
"Shenhua has reduced auction allocations while shifting focus to direct spot negotiations with local buyers. We anticipate market lethargy to persist if crude oil prices continue to fall," remarked a trader.
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