28 November 2024 - Shenhua's coal-based PP and PE Auction Results
Trading sentiment on the Shenhua auction platform reflected mixed outcomes following a softening trend on the Dalian Commodity Exchange (DCE). Despite this, Chinese buyers showed robust interest in LLDPE, primarily fueled by a CNY140/ton ($19/ton) discount,
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 28 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 |
950 |
532 |
7200 |
$879 |
7200-7480 |
$879-913 |
56% |
|
PPBC |
50 |
0 |
7900 |
$964 |
- |
- |
0.0% |
|
LLDPE |
500 |
500 |
8400 |
$1025 |
8550-8660 |
$1044-1057 |
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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Trading sentiment on the Shenhua auction platform reflected mixed outcomes following a softening trend on the Dalian Commodity Exchange (DCE). Despite this, Chinese buyers showed robust interest in LLDPE, primarily fueled by a CNY140/ton ($19/ton) discount, leading to sold-out volumes for these materials.
In contrast, Demand for homo-PP remained sluggish, as the CNY100/ton ($7/ton) price reduction failed to stimulate significant buyer interest. Weaker sentiment in the futures market further discouraged participation, with many opting to stay on the sidelines. Looking ahead, market participants remain cautious, monitoring market dynamics closely before committing further replenishment activities.
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