16 October 2024 - Shenhua's coal-based PP and PE Auction Results
Key PP and PE contracts on the Dalian Commodity Exchange experienced a modest rebound this morning, contributing to a slight increase in transactions on the Shenhua Auction Platform compared to the previous session.
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 16 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 |
2530 |
1495 |
7220 |
$899 |
7230-7650 |
$900-952 |
59.1% |
|
PPBC |
160 |
99 |
7450 |
$927 |
7450 |
$927 |
61.9% |
|
LLDPE |
1000 |
932 |
8100 |
$1008 |
8130-8500 |
$1012-1058 |
93.2% |
|
*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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Key PP and PE contracts on the Dalian Commodity Exchange experienced a modest rebound this morning, contributing to a slight increase in transactions on the Shenhua Auction Platform compared to the previous session.
Despite a price reduction of approximately CNY 80/ton ($11/ton), which spurred buying interest in LLDPE, the response in homo-PP and PPBC was limited. The minimal increase in transactions for these products indicates persistent market hesitation, with participants seemingly reluctant to fully engage despite the offered discounts. This cautious sentiment underscores the uncertainty surrounding the current market conditions.
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