14 January 2025 - Shenhua's coal-based PP and PE Auction Results
The Shenhua Auction Platform displayed divergent trading dynamics, with homo-PP garnering relatively robust demand, buoyed by resilience in the futures market. Despite a CNY 50/ton increase in auction prices, buying interest for homo-PP remained strong,
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes 14 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 |
2030 |
1779 |
7150 |
$863 |
7150-7520 |
$863-908 |
87.6% |
|
PPBC |
400 |
364 |
7350 |
$887 |
7350-7440 |
$887-898 |
91.0% |
|
LLDPE |
900 |
433 |
8300 |
$1002 |
8400 |
$1014 |
48.1% |
|
*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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The Shenhua Auction Platform displayed divergent trading dynamics, with homo-PP garnering relatively robust demand, buoyed by resilience in the futures market. Despite a CNY 50/ton increase in auction prices, buying interest for homo-PP remained strong, signalling sustained confidence among buyers in this segment.
In stark contrast, Chinese bidders exhibited reluctance toward coal-based LLDPE auctions, citing current price levels as exceeding market acceptance thresholds. The cautious sentiment was further amplified by the anticipated impact of several new production facilities coming online, prompting market participants to adopt a wait-and-see approach as they assessed the evolving supply landscape.
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