14 November 2024 - Shenhua's coal-based PP and PE Auction Results
The Shenhua Auction Platform wrapped up today’s session with strong results, achieving a 100% sell-off rate for coal-based LLDPE, despite lackluster futures trading on the Dalian Commodity Exchange. A CNY 40/ton increase in the auction price did not discourage
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 14 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 |
1300 |
1006 |
7100 |
$868 |
7100-7450 |
$868-911 |
77% |
|
PPBC |
100 |
100 |
7230 |
$884 |
7310 |
$894 |
100% |
|
LLDPE |
500 |
500 |
8240 |
$1008 |
8280-8460 |
$1012-1034 |
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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The Shenhua Auction Platform wrapped up today’s session with strong results, achieving a 100% sell-off rate for coal-based LLDPE, despite lackluster futures trading on the Dalian Commodity Exchange. A CNY 40/ton increase in the auction price did not discourage buyers, who fully absorbed the available quantities.
Since early November, Shenhua has reduced the quantities allocated to its auction platform, as it shifts its focus toward spot transactions with local converters, according to market sources.
Looking ahead, market participants remain cautiously optimistic, expecting the PP and PE market to remain largely stable, given the current economic uncertainties.
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