27 December 2024 - Shenhua's coal-based PP and PE Auction Results
Despite having a small auction quantity on the final trading day of the week, Shenhua proactively introduced discounts of CNY 20/ton on homo-PP and CNY 60/ton on LLDPE following sluggish trading results in the previous session.
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 27 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 |
200 |
200 |
7490 |
$908 |
7490-7500 |
$908-909 |
100.0% |
|
PPBC |
- |
- |
- |
- |
- |
- |
- |
|
LLDPE |
300 |
300 |
8810 |
$1068 |
8830-8850 |
$1070-1073 |
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 having a small auction quantity on the final trading day of the week, Shenhua proactively introduced discounts of CNY 20/ton on homo-PP and CNY 60/ton on LLDPE following sluggish trading results in the previous session. The price decision partly contributed to a strong offtake among Chinese bidders.
While Shenhua's auction volumes are expected to remain modest for the remainder of 2024—reflecting the coal-based producer's achievement of annual sales targets—recent operational startups at several new plants have introduced a level of market caution. This dynamic has tempered the ability of Chinese suppliers to adopt more aggressive pricing strategies, underscoring a cautious market outlook.
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.
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Written by: Kat Yun Yun
Edited by: Rochelle Nguyen