05 September 2024 - Shenhua's coal-based PP and PE Auction Results
Buying activities on the Shenhua Auction Platform showed no significant improvement towards the weekend, as falling futures contracts on the Dalian Commodity Exchange continued to deter both arbitrage traders and spot buyers from making new purchases.
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 05 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 |
1500 |
720 |
7400 |
$921 |
7400-7680 |
$921-956 |
48.0% |
|
PPBC |
150 |
0 |
7680 |
$956 |
- |
- |
0.0% |
|
LLDPE |
850 |
526 |
7850 |
$977 |
7870-8050 |
$980-1002 |
61.9% |
|
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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Buying activities on the Shenhua Auction Platform showed no significant improvement towards the weekend, as falling futures contracts on the Dalian Commodity Exchange continued to deter both arbitrage traders and spot buyers from making new purchases. This hesitation kept trading volumes on the platform low.
Despite facing multiple downward pressures since the start of the week, Shenhua has resisted making substantial cuts to its auction deal prices. This firm pricing stance has contributed to the lackluster auction results.
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