18 September 2024 - Shenhua's coal-based PP and PE Auction Results
Stable demand from the agricultural film sector provided robust support for coal-based LLDPE, as reflected in the strong auction results. In contrast, the homo-PP auction struggled, even after a CNY 80/ton discount from the previous session failed to stimulate sufficient buyer interest.
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 18 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 |
898 |
7200 |
$897 |
7200-7580 |
$897-945 |
49.1% |
|
PPBC |
510 |
53 |
7230 |
$901 |
7250-7500 |
$904-935 |
10.4% |
|
LLDPE |
1000 |
981 |
7900 |
$985 |
7900-8100 |
$985-1010 |
98.1% |
|
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 on the Shenhua Auction Platform resumed after the long weekend with a mixed performance, underscoring significant variations in demand across different polymer grades. Stable demand from the agricultural film sector provided robust support for coal-based LLDPE, as reflected in the strong auction results. In contrast, the homo-PP auction struggled, even after a CNY 80/ton discount from the previous session failed to stimulate sufficient buyer interest.
With the National Day Holiday fast approaching, pressure is mounting on Chinese PP suppliers to reduce domestic stockpiles amid dwindling export opportunities. As global demand remains uncertain, the narrowing window for exports could force sellers to make deeper concessions in local markets, further intensifying the competition and weighing on prices.
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