16 December 2024 - Shenhua's coal-based PP and PE Auction Results
Shenhua, a key coal-based producer, wrapped up the first auction session of the week on a robust footing, supported by a rebound in the Dalian Commodity Exchange and limited auction volumes.
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 16 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 |
400 |
391 |
7480 |
$909 |
7480-7560 |
$909-919 |
97.8% |
|
PPBC |
- |
- |
- |
- |
- |
- |
- |
|
LLDPE |
400 |
400 |
8620 |
$1048 |
8660-8780 |
$1053-1067 |
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, a key coal-based producer, wrapped up the first auction session of the week on a robust footing, supported by a rebound in the Dalian Commodity Exchange and limited auction volumes. These factors reflect the broader market dynamics as the company has already met its annual sales targets, leading to a significant reduction in auction allocations.
Market participants noted a narrowing price differential between coal-based homo-PP auction prices and the domestic spot market. In contrast, LLDPE auction prices remained CNY 30–90/ton lower than the lower end of local prices, providing a slight competitive edge to buyers.
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: Rochelle Nguyen