19 December 2024 - Shenhua's coal-based PP and PE Auction Results
The Shenhua auction platform concluded on a satisfactory note, though its overall performance was constrained by a persistent weakening trend, particularly in the homo-PP futures market. Market sentiment has been notably dampened by the anticipated commissioning of several new plants
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 19 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 |
560 |
456 |
7350 |
$891 |
$898-919 |
81.4% |
|
|
PPBC |
- |
- |
- |
- |
- |
- |
- |
|
LLDPE |
100 |
100 |
8680 |
$1052 |
8710-8720 |
$1056-1057 |
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 on a satisfactory note, though its overall performance was constrained by a persistent weakening trend, particularly in the homo-PP futures market. Market sentiment has been notably dampened by the anticipated commissioning of several new plants, which has heightened concerns about potential supply pressures. These concerns have, to some extent, eclipsed the appeal of cheaper homo-PP cargoes.
Conversely, the limited allocation of 100 tons of LLDPE by coal-based producers has fueled robust buying activity. Market sources believe that Shenhua may be able to allocate more LLDPE to the auction platform at the start of 2025.
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