15 October 2024 - Shenhua's coal-based PP and PE Auction Results
The Shenhua auction platform experienced a notably tepid market response this morning for both PP and PE, marking a decline in activity compared to the previous session. Even with a modest discount of CNY 50/ton ($7), buyer engagement was lackluster, reflecting broader market hesitancy.
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 15 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 |
1830 |
485 |
7270 |
$905 |
7270-7670 |
$905-955 |
26.5% |
|
PPBC |
280.5 |
113.5 |
7520 |
$936 |
7600-7900 |
$946-983 |
40.5% |
|
LLDPE |
1000 |
528 |
8180 |
$1018 |
8350-8500 |
$1039-1058 |
52.8% |
|
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. |
|||||||
The Shenhua auction platform experienced a notably tepid market response this morning for both PP and PE, marking a decline in activity compared to the previous session. Even with a modest discount of CNY 50/ton ($7), buyer engagement was lackluster, reflecting broader market hesitancy. Market sentiment was further dampened by ongoing weakness in futures contracts on the Dalian Commodity Exchange, which continued to decline throughout the morning session.
Local participants maintained a cautious stance, largely refraining from transactions as weak downstream demand for finished products persisted. This reluctance was compounded by a pervasive lack of confidence in any near-term market recovery.
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