03 January 2025 - Shenhua's coal-based PP and PE Auction Results
Market participants remain watchful of pre-Lunar New Year replenishment activities, which traditionally signal a seasonal demand uptick. However, expectations of new supply entering the market are likely to suppress any significant restocking momentum.
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 03 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 |
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|
Homo-PP |
1630 |
1337 |
7230 |
$876 |
7250-7550 |
$879-915 |
82.0% |
|
PPBC |
250 |
147 |
7560 |
$916 |
7560-7890 |
$916-956 |
58.8% |
|
LLDPE |
900 |
739 |
8660 |
$1050 |
8660-8870 |
$1050-1075 |
82.1% |
|
*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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Trading sentiment on the Shenhua Auction Platform weakened marginally compared to the previous session, influenced in part by softer performance in futures contracts on the Dalian Commodity Exchange. In a bid to stimulate buying interest, the coal-based producer lowered the upper end of the price range for homo-PP and LLDPE by CNY 20-30/ton, which helped keep transactions above 80%.
Market participants remain watchful of pre-Lunar New Year replenishment activities, which traditionally signal a seasonal demand uptick. However, expectations of new supply entering the market are likely to suppress any significant restocking momentum.
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