06 December 2024 - Shenhua's coal-based PP and PE Auction Results
Shenhua wrapped up the week on a strong footing, recovering from a lackluster performance in the prior session. The rebound was fuelled by strategic pricing adjustments—a CNY50 discount on homo-PP
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 06 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 % |
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|
CNY/ton |
USD/ton |
CNY/ton |
USD/ton |
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|
Combined and reported by CommoPlast |
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|
Homo-PP |
1150 |
1091 |
7180 |
$875 |
7180-7520 |
$875-917 |
94.9% |
|
PPBC |
340 |
99 |
7280 |
$887 |
7280 |
$887 |
29.1% |
|
LLDPE |
790 |
790 |
8480 |
$1034 |
8500-8650 |
$1036-1054 |
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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Shenhua wrapped up the week on a strong footing, recovering from a lackluster performance in the prior session. The rebound was fuelled by strategic pricing adjustments—a CNY50 discount on homo-PP and a CNY60 reduction on LLDPE—that reignited robust buying interest among Chinese traders, even as futures contracts continued to decline.
This surge in purchasing activity has brought a renewed sense of optimism to the market, suggesting that near-term price stability could be within reach despite broader uncertainties.
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