16 January 2025 - Shenhua's coal-based PP and PE Auction Results
Trading activity on the Shenhua Auction Platform continued to show stark divergence, with PP commanding significantly stronger buying interest compared to LLDPE. This trend has persisted throughout the week, mirroring patterns observed on the Dalian Commodity Exchange and the domestic spot market.
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes 16 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 |
1085 |
1083 |
7230 |
$873 |
7250-7480 |
$875-903 |
99.8% |
|
PPBC |
100 |
99 |
7350 |
$887 |
7350 |
$887 |
99.0% |
|
LLDPE |
900 |
250 |
8150 |
$984 |
8150-8540 |
$984-1031 |
27.8% |
|
*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 activity on the Shenhua Auction Platform continued to show stark divergence, with PP commanding significantly stronger buying interest compared to LLDPE. This trend has persisted throughout the week, mirroring patterns observed on the Dalian Commodity Exchange and the domestic spot market.
Despite Shenhua's attempt to stimulate demand with a CNY 50/ton discount on coal-based LLDPE film cargoes, buyer response was notably weak. The producer managed to sell less than 30% of the available allocation, underscoring tepid market interest and mounting challenges in clearing inventories.
With the Lunar New Year holiday on the horizon, market sentiment remains cautious. Many buyers have scaled back operations, aligning with reduced expectations for a near-term price recovery.
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