06 November 2024 - Shenhua's coal-based PP and PE Auction Results
Chinese buyers were notably active in today’s market, with Shenhua’s auction session ending on a strong note. This performance comes despite declining key futures contracts on the Dalian Commodity Exchange and a CNY 50/ton increase in coal-based LLDPE film cargo prices.
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 06 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 |
|||||||
|
Homo-PP |
1460 |
1398 |
7150 |
$885 |
7150-7530 |
$885-932 |
95.8% |
|
PPBC |
50 |
50 |
7600 |
$941 |
7600-7610 |
$941-942 |
100% |
|
LLDPE |
600 |
600 |
8200 |
$1015 |
8230-8400 |
$1019-1040 |
100% |
|
*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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Chinese buyers were notably active in today’s market, with Shenhua’s auction session ending on a strong note. This performance comes despite declining key futures contracts on the Dalian Commodity Exchange and a CNY 50/ton increase in coal-based LLDPE film cargo prices. Strong agricultural film demand has continued to support the offtake rate, partially offsetting market pressures.
However, nearly a week into November, auction volumes remain below normal levels. According to sources, uncertainty around potential government stimulus measures and the outcome of the US presidential election has kept both buyers and sellers wary. These factors could further influence trading volumes and pricing trends in the days ahead.
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