19 September 2024 - Shenhua's coal-based PP and PE Auction Results
Buying interest for LLDPE remained robust, with no additional discounts offered on auction prices, reflecting solid demand. In contrast, Shenhua introduced a modest CNY 50/ton discount on homo-PP, successfully stimulating demand in that segment.
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 19 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 |
1450 |
1162 |
7150 |
$894 |
7150-7520 |
$894-940 |
80.1% |
|
PPBC |
610 |
372 |
7050 |
$881 |
7050-7600 |
$881-950 |
61.0% |
|
LLDPE |
1070 |
1070 |
7900 |
$987 |
7900-8110 |
$987-1014 |
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 surged following the U.S. Federal Reserve's larger-than-expected interest rate cut, which bolstered optimism in global equity and futures markets. Buying interest for LLDPE remained robust, with no additional discounts offered on auction prices, reflecting solid demand. In contrast, Shenhua introduced a modest CNY 50/ton discount on homo-PP, successfully stimulating demand in that segment.
However, Chinese traders remained cautious, adopting a conservative stance ahead of the upcoming National Day holiday. This caution underscores lingering uncertainties about near-term market trends, as traders weigh global economic shifts against domestic market dynamics.
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