11 November 2024 - Shenhua's coal-based PP and PE Auction Results
Shenhua’s first trading session of the week closed on a lackluster note, falling short of market expectations despite a significant reduction in auction volume. Declines in futures contracts on the Dalian Commodity Exchange discouraged arbitrage traders from purchasing coal-based parcels, resulting in subdued activity on the Auction Platform.
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 11 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 |
1400 |
556 |
7150 |
$881 |
7190-7530 |
$886-928 |
39.7% |
|
PPBC |
46 |
0 |
7750 |
$955 |
- |
- |
0.0% |
|
LLDPE |
600 |
400 |
8240 |
$1016 |
8320-8350 |
$1025-1029 |
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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Shenhua’s first trading session of the week closed on a lackluster note, falling short of market expectations despite a significant reduction in auction volume. Declines in futures contracts on the Dalian Commodity Exchange discouraged arbitrage traders from purchasing coal-based parcels, resulting in subdued activity on the Auction Platform.
While interest in PP remained low, LLDPE attracted relatively stronger bids, supported by consistent demand from the agricultural film sector.
The government’s recent debt swap plan, intended to stimulate economic recovery, has so far had minimal impact on local market sentiment. With a cautious eye on potential market shifts, players are maintaining conservative positions, opting to retain substantial stock reserves.
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