05 November 2024 - Shenhua's coal-based PP and PE Auction Results
The introduction of a CNY50/ton discount provided a temporary boost in buying interest for homo-PP. Meanwhile, demand for LLDPE held steady, driven mainly by constrained supply and seasonal demand from the agricultural film sector in northern China.
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 05 November 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 |
1630 |
1628 |
7150 |
$892 |
7150-7530 |
$892-940 |
99.9% |
|
PPBC |
50 |
30 |
7720 |
$964 |
7720 |
$964 |
60.0% |
|
LLDPE |
800 |
800 |
8150 |
$1017 |
8190-8390 |
$1022-1047 |
100.0% |
|
*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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Trading sentiment on the Shenhua Auction Platform showed modest improvement from the previous session, largely buoyed by firming futures contracts on the Dalian Commodity Exchange. The introduction of a CNY50/ton discount provided a temporary boost in buying interest for homo-PP. Meanwhile, demand for LLDPE held steady, driven mainly by constrained supply and seasonal demand from the agricultural film sector in northern China.
Looking ahead, the market faces considerable uncertainty. Potential stimulus measures from the ongoing NPC meeting could influence short-term sentiment, yet the imminent startup of several new PP plants may exacerbate supply pressures. Cautious market participants are closely monitoring for any concrete shifts in the supply-demand balance, but the impact of new policies remains speculative.
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