02 January 2025 - Shenhua's coal-based PP and PE Auction Results
In a positive development, auction allocations have significantly increased, a change that market sources view as a welcome relief. This improved allocation is expected to provide some easing of the current tightness in spot cargoes, though challenges remain.
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 02 January 2025. 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 |
1780 |
1776 |
7200 |
$873 |
7210-7570 |
$874-918 |
99.8% |
|
PPBC |
250 |
248 |
7550 |
$915 |
7550-7860 |
$915-953 |
99.2% |
|
LLDPE |
900 |
900 |
8650 |
$1049 |
8650-8900 |
$1049-1079 |
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 a weakening performance in key futures contracts on the Dalian Commodity Exchange, Shenhua delivered impressive sales in the first auction session of 2025. This strong showing was largely attributed to the competitive pricing strategy adopted by the coal-based producer, which resonated well with buyers amid a persistently firm domestic spot market.
In a positive development, auction allocations have significantly increased, a change that market sources view as a welcome relief. This improved allocation is expected to provide some easing of the current tightness in spot cargoes, though challenges remain.
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: Muhammad Hafiz