07 January 2025 - Shenhua's coal-based PP and PE Auction Results
Despite a downward trend in both PP and PE prices on the Dalian Commodity Exchange, auction sales performance showed resilience, surpassing the previous auction session. The notable discount of CNY 100-120/ton played a key role in stimulating robust buying activity.
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 07 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 |
1680 |
1490 |
7120 |
$860 |
7150-7470 |
$863-902 |
88.7% |
|
PPBC |
50 |
50 |
7800 |
$942 |
7880-7890 |
$951-953 |
100.0% |
|
LLDPE |
900 |
798 |
8500 |
$1026 |
8500-8770 |
$1026-1059 |
88.7% |
|
*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 downward trend in both PP and PE prices on the Dalian Commodity Exchange, auction sales performance showed resilience, surpassing the previous auction session. The notable discount of CNY 100-120/ton played a key role in stimulating robust buying activity.
Looking ahead, uncertainty continues to cloud the market outlook, as participants point to the lack of strong fundamental drivers, underscoring weak sentiment in the futures market meanwhile for LLDPE short-term support has emerged from tighter supply in the spot market.
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