04 December 2024 - Shenhua's coal-based PP and PE Auction Results
The Shenhua auction platform concluded today’s session with a positive outcome, recording 100% sold volumes for coal-based LLDPE, despite the prevailing weak trend in the futures market on the Dalian Commodity Exchange (DCE).
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 04 December 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 |
1010 |
705 |
7230 |
$879 |
7230-7550 |
$879-918 |
69.8% |
|
PPBC |
- |
- |
- |
- |
- |
- |
- |
|
LLDPE |
600 |
600 |
8500 |
$1033 |
8550-8760 |
$1039-1065 |
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 concluded today’s session with a positive outcome, recording 100% sold volumes for coal-based LLDPE, despite the prevailing weak trend in the futures market on the Dalian Commodity Exchange (DCE). In contrast, demand for homo-PP from Chinese buyers showed signs of weakening, influenced by abundant supply, resulting in a less favourable auction outcome compared to the previous session.
As the year nears its conclusion, market participants are adopting a cautious stance, carefully assessing market trends. Many indicated that current purchases are driven primarily by immediate needs.
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