26 November 2024 - Shenhua's coal-based PP and PE Auction Results
The Shenhua Auction Platform performed robustly for a second consecutive day, with all grades sold out. Trading sentiments were bolstered by gains on the Dalian Commodity Exchange as well as attractive rates as compared to the spot market
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 26 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 |
1057 |
1057 |
7180 |
$876 |
7180-7500 |
$876-915 |
100.0% |
|
PPBC |
60 |
60 |
7800 |
$952 |
7830-7840 |
$956-957 |
100.0% |
|
LLDPE |
300 |
300 |
8470 |
$1034 |
8490-8520 |
$1036-1040 |
100.0% |
|
*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 performed robustly for a second consecutive day, with all grades sold out. Trading sentiments were bolstered by gains on the Dalian Commodity Exchange as well as attractive rates as compared to the spot market, where local producers had been reluctant to offer discounts toward the month’s end.
The LLDPE grade was deemed particularly competitive, as expectations for tightened imports had driven spot market offers up to CNY8,600-8,900/ton (VAT included, EXW China), CNY200-500/ton higher than on the auction platform.
However, questions linger over Shenhua’s ability to sustain its sales momentum into the near term. One market participant noted: “Buyers remain wary, given that the platform’s offers have been at a rebound from the previous week. Most buyers have come solely for periodic replenishment. The heightened activity is needs-driven, not necessarily indicative of a sentimental shift.”
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: Derek Yong