06 September 2024 - Shenhua's coal-based PP and PE Auction Results
Transactions on the Shenhua Auction Platform surged on the final trading day of the week, driven by a CNY 50/ton discount on homo-PP cargoes offered by the coal-based producer. The price reduction helped restore some attractiveness to these parcels, aligning with a more stable trend observed on the Dalian Commodity Exchange.
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 06 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 |
1750 |
1401 |
7350 |
$917 |
7350-7620 |
$917-951 |
80.1% |
|
PPBC |
250 |
0 |
7480 |
$934 |
- |
- |
0.0% |
|
LLDPE |
800 |
800 |
7850 |
$980 |
7880-8050 |
$984-1005 |
100.0% |
|
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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Transactions on the Shenhua Auction Platform surged on the final trading day of the week, driven by a CNY 50/ton discount on homo-PP cargoes offered by the coal-based producer. The price reduction helped restore some attractiveness to these parcels, aligning with a more stable trend observed on the Dalian Commodity Exchange.
However, despite the uptick in trading activity, Chinese bidders remained cautious about the near-term market outlook. Concerns over bearish macroeconomic conditions and the continued decline in crude oil prices have cast a shadow over the polyolefin sector, fueling uncertainty and tempering optimism among market participants.
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