18 November 2024 - Shenhua's coal-based PP and PE Auction Results
Chinese bidders demonstrated strong purchasing interest during the first auction session of the week, acquiring additional coal-based PP parcels through the Shenhua Auction Platform, despite bearish signals from the Dalian Commodity Exchange.
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 18 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 |
1650 |
1426 |
7140 |
$874 |
7140-7540 |
$874-923 |
86% |
|
PPBC |
204 |
132 |
7310 |
$895 |
7310-7490 |
$895-917 |
65% |
|
LLDPE |
400 |
400 |
8400 |
$1028 |
8400-8510 |
$1028-1042 |
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 bidders demonstrated strong purchasing interest during the first auction session of the week, acquiring additional coal-based PP parcels through the Shenhua Auction Platform, despite bearish signals from the Dalian Commodity Exchange.
The coal-based homo-PP maintained its competitive edge over spot market rates and futures trading, even after a CNY 40/metric ton price increase at auction. Industry participants expect Shenhua to restrict auction volumes of key materials in the near-term, as the producer shifts its focus toward spot market transactions.
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