07 November 2024 - Shenhua's coal-based PP and PE Auction Results
The Shenhua auction platform closed today with mixed results. Chinese buyers showed notable interest in PP, though purchases remained restricted to immediate needs, reflecting continued uncertainty about current market conditions.
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 07 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 % |
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|
CNY/ton |
USD/ton |
CNY/ton |
USD/ton |
||||
|
Combined and reported by CommoPlast |
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|
Homo-PP |
1500 |
1397 |
7150 |
$882 |
7150-7510 |
$882-827 |
93.1% |
|
PPBC |
60 |
60 |
7600 |
$938 |
7600-7610 |
$938-939 |
100.0% |
|
LLDPE |
600 |
400 |
8240 |
$1017 |
8300-8390 |
$1024-1036 |
66.7% |
|
*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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The Shenhua auction platform closed today with mixed results. Chinese buyers showed notable interest in PP, though purchases remained restricted to immediate needs, reflecting continued uncertainty about current market conditions. In contrast, demand for LLDPE cargoes softened unexpectedly, with transaction volumes weaker than in the previous session.
Market participants are maintaining a cautious approach amid ongoing currency fluctuations and anticipated economic stimulus measures from the Chinese government. Many buyers are choosing to remain on the sidelines, awaiting clearer signals before committing to further purchases.
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