29 October 2024 - Shenhua's coal-based PP and PE Auction Results
While Chinese bidders portrayed thin interest in PP, demand for LLDPE remained satisfactory driven by consistent demand for agricultural film in northern China.
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 29 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 |
1300 |
900 |
7250 |
$899 |
7280-7530 |
$902-933 |
69.2% |
|
PP Thinwall |
- |
- |
- |
- |
- |
- |
- |
|
PPBC |
110 |
10 |
7600 |
$942 |
7750 |
$961 |
9.1% |
|
LLDPE |
600 |
600 |
8230 |
$1020 |
8230-8270 |
$1020-1037 |
100.0% |
|
LDPE heavy duty |
- |
- |
- |
- |
- |
- |
- |
|
HDPE |
- |
- |
- |
- |
- |
- |
- |
|
*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. |
|||||||
Shenhua Auction Platform saw mixed results in the second session of the week, influenced by the weakening futures market on the Dalian Commodity Exchange. The nosedived energy complex severely affected buyers’ confidence in procuring additional cargoes.
While Chinese bidders portrayed thin interest in PP, demand for LLDPE remained satisfactory driven by consistent demand for agricultural film in northern China. As the end of the month approached, local buyers remained cautious, the ongoing decline in crude oil prices dampening market confidence. This cautious sentiment highlighted the market's sensitivity towards the potential impacts of lower crude oil prices and the upcoming US presidential election which could significantly influence market dynamics.
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