26 September 2024 - Shenhua's coal-based PP and PE Auction Results
Trading sentiment on the Shenhua Auction Platform continued to weaken heading into the weekend, even as futures contracts firmed on the Dalian Commodity Exchange. The lackluster auction results underscored the prevailing disinterest among Chinese buyers to stockpile inventories,
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 26 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 |
2130 |
1402 |
7130 |
$899 |
7130-7510 |
$899-947 |
65.8% |
|
PPBC |
670 |
509 |
7400 |
$933 |
7400-7870 |
$933-992 |
76.0% |
|
LLDPE |
900 |
640 |
8050 |
$1015 |
8080-8120 |
$1019-1024 |
71.1% |
|
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 sentiment on the Shenhua Auction Platform continued to weaken heading into the weekend, even as futures contracts firmed on the Dalian Commodity Exchange. The lackluster auction results underscored the prevailing disinterest among Chinese buyers to stockpile inventories, particularly in the absence of meaningful price discounts.
The tepid demand reflects broader market caution, with buyers having largely completed their replenishment cycles and showing little incentive to engage in further purchasing. This subdued activity is expected to persist through the remainder of the week, as market participants retreat ahead of the National Day holiday.
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