24 October 2024 - Shenhua's coal-based PP and PE Auction Results
Trading activity on the Shenhua Auction Platform experienced a slight decline compared to the previous session, although it remained within acceptable levels. A dwindling futures contract on the Dalian Commodity Exchange has tempered aggressive replenishment activities
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 24 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 |
2260 |
1722 |
7150 |
$889 |
7170-7500 |
$891-932 |
76.2% |
|
PPBC |
275.85 |
32.85 |
7150 |
$889 |
7260 |
$902 |
11.9% |
|
LLDPE |
700 |
600 |
8200 |
$1019 |
8240-8360 |
$1024-1039 |
85.7% |
|
*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. |
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Trading activity on the Shenhua Auction Platform experienced a slight decline compared to the previous session, although it remained within acceptable levels. A dwindling futures contract on the Dalian Commodity Exchange has tempered aggressive replenishment activities, particularly in the absence of significant discounts from coal-based producers.
Market participants are adopting cautious buying strategies, a trend likely to continue in the near term as they closely monitor developments surrounding the upcoming US presidential election and China’s National People’s Congress (NPC).
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