12 September 2024 - Shenhua's coal-based PP and PE Auction Results
Trading sentiment on the Shenhua Auction Platform improved sharply late in the week, driven by gains in key contracts on the Dalian Commodity Exchange. The auctions for LLDPE were particularly robust
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 12 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 |
1880 |
1477 |
7250 |
$901 |
7250-7600 |
$901-945 |
78.6% |
|
PPBC |
626 |
252 |
7300 |
$907 |
7300-7600 |
$907-945 |
40.3% |
|
LLDPE |
500 |
500 |
8010 |
$996 |
8060-8080 |
$1002-1004 |
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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Trading sentiment on the Shenhua Auction Platform improved sharply late in the week, driven by gains in key contracts on the Dalian Commodity Exchange. The auctions for LLDPE were particularly robust, with prices climbing by CNY 40-60/ton ($7-8/ton) and all available volumes being sold. Conversely, the coal-based producer reduced homo-PP prices by CNY 50/ton, resulting in satisfactory transaction levels.
However, market participants remain cautious ahead of the upcoming long weekend holiday, reflecting uncertainties in both local and international markets. Additionally, there is heightened attention on the operational status of petrochemical plants in Louisiana, US, as Hurricane Francine made landfall, potentially impacting supply chains.
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