09 October 2024 - Shenhua's coal-based PP and PE Auction Results
Trading sentiment on the Shenhua auction platform experienced a significant decline compared to the previous session, mirroring the broader correction on the Dalian Commodity Exchange.
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 09 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 |
2560 |
1144 |
7400 |
$928 |
7420-7760 |
$930-973 |
44.7% |
|
PPBC |
240.5 |
145 |
7780 |
$975 |
7780-8110 |
$975-1017 |
60.3% |
|
LLDPE |
877 |
615 |
8250 |
$1034 |
8250-8500 |
$1034-1065 |
70.1% |
|
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 experienced a significant decline compared to the previous session, mirroring the broader correction on the Dalian Commodity Exchange. This downturn is primarily driven by the absence of new economic stimulus from the government, leading to a swift deterioration in market confidence.
Shenhua's aggressive move to raise auction prices for both PP and PE by over CNY 200/ton met with considerable pushback from buyers, who were reluctant to engage amid heightened market volatility. In such uncertain conditions, this pricing strategy appears misaligned with the market's current capacity to absorb higher costs.
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: Muhammad Hafiz