30 September 2024 - Shenhua's coal-based PP and PE Auction Results
Shenhua concluded its final auction of the month on a high note, with all available grades achieving full sales. The outcome reflects a bullish market sentiment, driven largely by a series of government stimulus measures that have spurred futures trading on the Dalian Commodity Exchange and prompted last-minute pre-holiday replenishment.
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 30 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 |
1600 |
1600 |
7150 |
$903 |
7150-7630 |
$903-963 |
100.0% |
|
PPBC |
100 |
100 |
7600 |
$959 |
7670-7680 |
$968-970 |
100.0% |
|
LLDPE |
250 |
250 |
8200 |
$1035 |
8260-8290 |
$1043-1047 |
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 concluded its final auction of the month on a high note, with all available grades achieving full sales. The outcome reflects a bullish market sentiment, driven largely by a series of government stimulus measures that have spurred futures trading on the Dalian Commodity Exchange and prompted last-minute pre-holiday replenishment.
One trader remarked, “The strong auction results were expected. Market sentiment remains optimistic, especially with anticipation of increased demand post-holiday.”
Chinese buyers were notably active on the Shenhua Auction Platform, seeking additional cargoes as domestic suppliers strategically withheld spot offers for PP and PE, banking on a firmer market outlook in the near future. This deliberate withholding reflects a calculated anticipation of further market strengthening, highlighting the cautious yet opportunistic stance of domestic suppliers in response to ongoing 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