06 January 2025 - Shenhua's coal-based PP and PE Auction Results
The Shenhua auction platform concluded on a subdued note, aligning with the weakening trend observed on the Dalian Commodity Exchange for PP and PE materials. In an effort to boost sales, coal-based producers implemented a price reduction of CNY 40-50/ton
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 06 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 |
1068 |
7220 |
$872 |
7250-7510 |
$875-907 |
65.5% |
|
PPBC |
250 |
50 |
7550 |
$912 |
7920-7930 |
$956-957 |
20.0% |
|
LLDPE |
1000 |
255 |
8620 |
$1041 |
8700-8820 |
$1050-1065 |
25.5% |
|
*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 subdued note, aligning with the weakening trend observed on the Dalian Commodity Exchange for PP and PE materials. In an effort to boost sales, coal-based producers implemented a price reduction of CNY 40-50/ton at the higher end of the overall price range. However, these measures failed to generate significant buying interest, reflecting persistent caution among market participants.
Investor confidence was further shaken by sharp declines in futures contracts on the Dalian Commodity Exchange, compounded by heightened concerns over a potential US-China trade conflict. Amid this uncertainty, most buyers have opted to adopt a wait-and-see approach, closely monitoring pre-holiday replenishment activities before making significant purchasing decisions.
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