23 October 2024 - Shenhua's coal-based PP and PE Auction Results
With key contract PP and PE materials of the Dalian Commodity Exchanges (DCE) experienced a continuous rebound reflecting more successful results on the Shenhua auction platform compared to the previous auction.
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 23 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 |
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|
Homo-PP |
2350 |
2350 |
7150 |
$887 |
7180-7510 |
$891-932 |
100.0% |
|
PPBC |
453 |
239 |
7150 |
$887 |
7150-7750 |
$887-962 |
52.8% |
|
LLDPE |
600 |
570 |
8150 |
$1012 |
8250-8290 |
$1024-1029 |
95.0% |
|
*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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With key contract PP and PE materials of the Dalian Commodity Exchanges (DCE) experienced a continuous rebound reflecting more successful results on the Shenhua auction platform compared to the previous auction. Chinese bidders developed a strong interest in PP-homo and LLDPE materials as they seek to replenish stock after a brief period of inactivity over the past two days.
A market participant noted, "We're observing a shift in buyer behavior, with participants willing to make purchases, but this is driven solely by short-term requirements." While these developments signal some positive momentum, questions on the sustainability of the trend remained in place.
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