25 November 2024 - Shenhua's coal-based PP and PE Auction Results
The Shenhua auction concluded on a strong note despite weak trading sentiment in the futures market on the Dalian Commodity Exchange (DCE). As the month-end approaches, the producer intentionally reduced allocations to the auction platform, which contributed to the robust results.
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 25 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 |
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|
Homo-PP |
1230 |
1096 |
7180 |
$878 |
7180-7500 |
$878-917 |
89% |
|
PPBC |
42.15 |
42.15 |
7200 |
$880 |
7200 |
$880 |
100% |
|
LLDPE |
200 |
200 |
8600 |
$1051 |
8650 |
$1057 |
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 concluded on a strong note despite weak trading sentiment in the futures market on the Dalian Commodity Exchange (DCE). As the month-end approaches, the producer intentionally reduced allocations to the auction platform, which contributed to the robust results.
The homo-PP sector faced a lukewarm response from Chinese buyers, as a price discount of CNY 30–200/ton failed to significantly boost buying activity. The sustainability of this bullish trend remains uncertain, with market participants closely monitoring price movements and anticipating upcoming market dynamics.
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