15 November 2024 - Shenhua's coal-based PP and PE Auction Results
The Shenhua auction platform concluded today's session on a strong note, supported by improved trading sentiment in the futures market on the Dalian Commodity Exchange, especially for LLDPE. Despite price hikes of CNY 140/ton, buying activity remained robust
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 15 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 |
1200 |
1200 |
7100 |
$869 |
7130-7470 |
$873-914 |
100% |
|
PPBC |
237 |
133 |
7130 |
$895 |
7310-7480 |
$895-916 |
56% |
|
LLDPE |
400 |
400 |
8380 |
$1026 |
8410-8530 |
$1029-1044 |
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 concluded today's session on a strong note, supported by improved trading sentiment in the futures market on the Dalian Commodity Exchange, especially for LLDPE. Despite price hikes of CNY 140/ton, buying activity remained robust, with all quantities sold. Ongoing supply constraints, coupled with seasonal demand from the agricultural sector, continue to support the bullish trend.
The volume of auctions on the platform has continued to decrease since early November, reflecting shifts in transactions with local converters.
Looking ahead, market participants remain optimistic, although the sustainability of the current uptrend remains uncertain due to broader economic conditions.
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