18 December 2024 - Shenhua's coal-based PP and PE Auction Results
Despite Shenhua's ultimately positive trading performance, the homo-PP market weakened, with transaction volumes moderating visibly from the previous session. This decline was predominantly driven by bearish sentiment reflected in futures contracts
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 18 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 |
460 |
390 |
7500 |
$910 |
7500-7560 |
$910-918 |
84.8% |
|
PPBC |
- |
- |
- |
- |
- |
- |
- |
|
LLDPE |
100 |
94 |
8680 |
$1054 |
8720 |
$1059 |
94.0% |
|
*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 Shenhua's ultimately positive trading performance, the homo-PP market weakened, with transaction volumes moderating visibly from the previous session. This decline was predominantly driven by bearish sentiment reflected in futures contracts on the Dalian Commodity Exchange despite a sharp reduction in auction volumes.
Meanwhile, the coal-based producer allocated merely 100 tons of LLDPE to the auction. This quantity was minuscule compared to the abrupt surge in demand for this grade in the domestic spot market.
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