25 September 2024 - Shenhua's coal-based PP and PE Auction Results
Amid continued firming trends for key PP and LLDPE contracts on the Dalian Commodity Exchange, driven by the government's broad economic stimulus measures, Chinese bidders have shown increased interest in auctions for coal-based materials.
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 25 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 |
2300 |
2010 |
7100 |
$895 |
7140-7540 |
$900-951 |
87.4% |
|
PPBC |
1038 |
1038 |
7150 |
$901 |
7150-7850 |
$901-990 |
100.0% |
|
LLDPE |
1000 |
866 |
7900 |
$996 |
7970-8120 |
$1005-1024 |
86.6% |
|
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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Amid continued firming trends for key PP and LLDPE contracts on the Dalian Commodity Exchange, driven by the government's broad economic stimulus measures, Chinese bidders have shown increased interest in auctions for coal-based materials.
However, despite the optimistic outlook surrounding these stimulus efforts, market sentiment remains cautious. Auction results for coal-based homo-PP and LLDPE failed to reach full participation, with deals falling short of 100% despite Shenhua's relatively modest price hikes of CNY 30-40/ton. This hesitancy highlights a clear reluctance within the market to embrace even minimal price increases at this time.
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