19 November 2024 - Shenhua's coal-based PP and PE Auction Results
Shenhua achieved strong auction results for the second consecutive trading day this week, driven by a CNY 50/ton discount on coal-based LLDPE and support from firming futures contracts on the Dalian Commodity Exchange.
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 19 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 |
1350 |
1309 |
7140 |
$874 |
7140-7460 |
$874-913 |
97% |
|
PPBC |
100 |
99 |
7490 |
$917 |
7550-7560 |
$924-925 |
99% |
|
LLDPE |
600 |
590 |
8350 |
$1022 |
8350-8530 |
$1022-1044 |
98% |
|
*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 achieved strong auction results for the second consecutive trading day this week, driven by a CNY 50/ton discount on coal-based LLDPE and support from firming futures contracts on the Dalian Commodity Exchange. Traders were further incentivized by the large price gap between auction offers and the domestic spot market, particularly as auction volumes have been significantly reduced in recent weeks.
“While the domestic spot market remains stable throughout the morning session, local producers have indicated higher prices in the second half of the trading day. This has prompted buyers to snap up more competitively priced coal-based parcels,” a market source added.
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: Rochelle Nguyen