17 December 2024 - Shenhua's coal-based PP and PE Auction Results
Despite sluggish futures trading on the Dalian Commodity Exchange during the morning session, Shenhua successfully sold most of its available auction volume. The slight discounts offered on coal-based homo-PP cargoes supported the satisfactory transaction results
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 17 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 |
680 |
672 |
7300 |
$887 |
7430-7570 |
$903-920 |
98.8% |
|
PPBC |
- |
- |
- |
- |
- |
- |
- |
|
LLDPE |
100 |
100 |
8680 |
$1055 |
8710-8720 |
$1059-1060 |
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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Despite sluggish futures trading on the Dalian Commodity Exchange during the morning session, Shenhua successfully sold most of its available auction volume. The slight discounts offered on coal-based homo-PP cargoes supported the satisfactory transaction results, alongside limited auction availability, which further facilitated the sales.
As the year-end approaches, market participants remain cautious, adopting an on-need-only replenishment strategy. Buyers continue to closely monitor market developments amid expectations of upcoming plant startups in the near term, which could weigh on supply dynamics.
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