22 October 2024 - Shenhua's coal-based PP and PE Auction Results
Trading activities on the Shenhua Auction Platform showed marked improvement on the second day of the week, despite the ongoing decline in futures contracts on the Dalian Commodity Exchange. Market sources attributed the increased buying interest to the coal-based producer's decision to reduce auction prices by CNY 20-50/ton
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 22 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 |
2250 |
1611 |
7250 |
$901 |
7250-7500 |
$901-932 |
71.6% |
|
PPBC |
60 |
43 |
7750 |
$963 |
7750 |
$963 |
71.7% |
|
LLDPE |
600 |
550 |
8150 |
$1013 |
8200-8270 |
$1019-1028 |
91.7% |
|
*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. |
|||||||
Trading activities on the Shenhua Auction Platform showed marked improvement on the second day of the week, despite the ongoing decline in futures contracts on the Dalian Commodity Exchange. Market sources attributed the increased buying interest to the coal-based producer's decision to reduce auction prices by CNY 20-50/ton, bringing auction deals CNY 100-200/ton below spot market prices. This price differential was seen as acceptable by many Chinese buyers.
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