08 October 2024 - Shenhua's coal-based PP and PE Auction Results
Shenhua wrapped up its first auction session in October with notable success, selling out all available cargoes. This result was largely driven by robust buying activity, spurred by an upswing in futures contracts on the Dalian Commodity Exchange
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 08 October 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 |
2460 |
2460 |
7200 |
$901 |
7350-7770 |
$920-973 |
100.0% |
|
PPBC |
310 |
310 |
7600 |
$951 |
7720-8010 |
$966-1003 |
100.0% |
|
LLDPE |
770 |
770 |
8000 |
$1001 |
8210-8510 |
$1028-1065 |
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 wrapped up its first auction session in October with notable success, selling out all available cargoes. This result was largely driven by robust buying activity, spurred by an upswing in futures contracts on the Dalian Commodity Exchange and the relatively attractive pricing of the coal-based parcels.
In fact, while the domestic spot market has gained CNY 150-200/ton compared to the pre-holiday period, Shenhua’s auction prices only firmed up by CNY 50/ton, creating a considerable price gap between the Auction Platform and the spot offers.
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