13 September 2024 - Shenhua's coal-based PP and PE Auction Results
While LLDPE sales saw a boost, largely driven by a CNY 110/ton ($15/ton) reduction in auction prices, the company’s decision to raise the price of homo-PP by CNY 30/ton ($4/ton) backfired, resulting in a notable decline in transactions.
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 13 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 |
1850 |
996 |
7280 |
$906 |
7430-7640 |
$925-951 |
53.8% |
|
PPBC |
627 |
371 |
7300 |
$909 |
7300-7850 |
$909-977 |
59.2% |
|
LLDPE |
700 |
700 |
7900 |
$983 |
7930-8090 |
$987-1007 |
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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Shenhua closed the week on a mixed note, with varying results across different products. While LLDPE sales saw a boost, largely driven by a CNY 110/ton ($15/ton) reduction in auction prices, the company’s decision to raise the price of homo-PP by CNY 30/ton ($4/ton) backfired, resulting in a notable decline in transactions.
Looking ahead, while a portion of the market will operate on Saturday, 14 September 2024, to make up for the Mid-Autumn Festival holiday, sentiment remains cautious. Most market participants are expected to adopt a wait-and-see stance, likely deferring purchases until after the holiday period.
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