25 October 2024 - Shenhua's coal-based PP and PE Auction Results
As futures contracts on the Dalian Commodity Exchange continued their upward trajectory, Chinese bidders displayed increased confidence in securing coal-based cargoes on the Shenhua Auction Platform.
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 25 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 |
2260 |
1993 |
7150 |
$889 |
7150-7530 |
$889-936 |
88.2% |
|
PPBC |
143.325 |
83.325 |
7100 |
$882 |
7130-7720 |
$886-960 |
58.1% |
|
LLDPE |
700 |
693 |
8200 |
$1019 |
8260-8370 |
$1027-1040 |
99.0% |
|
*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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As futures contracts on the Dalian Commodity Exchange continued their upward trajectory, Chinese bidders displayed increased confidence in securing coal-based cargoes on the Shenhua Auction Platform. This uptick in purchasing was further supported by Shenhua’s choice to keep auction prices relatively stable from the previous day.
However, reports suggest that buyers largely refrained from aggressive stockpiling, opting instead for a cautious, measured approach. This trend reflects an underlying uncertainty among market participants, who appear reluctant to commit fully until more definitive market indicators emerge.
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