17 January 2025 - Shenhua's coal-based PP and PE Auction Results
For the first time in months, Shenhua has allocated a larger volume of LLDPE film to auction compared to homo-PP. Market sources attribute this shift to persistently weak demand for LLDPE over the past two weeks.
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes 17 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 |
950 |
762 |
7200 |
$869 |
7250-7460 |
$875-901 |
80.2% |
|
LLDPE |
1000 |
422 |
8150 |
$984 |
8200-8420 |
$990-1017 |
42.2% |
|
*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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For the first time in months, Shenhua has allocated a larger volume of LLDPE film to auction compared to homo-PP. Market sources attribute this shift to persistently weak demand for LLDPE over the past two weeks. The coal-based producer concluded its final auction session of the week with only 42% of LLDPE deals successfully closed.
In contrast, sales of homo-PP remained strong, buoyed by a CNY 30/ton discount on auction prices. Chinese bidders anticipate that this divergent trend could continue into the coming week, as converters gradually scale back operations in preparation for the Lunar New Year holiday.
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.
Written by: Kat Yun Yun
Edited by: Muhammaf Hafiz