21 January 2025 - Shenhua's coal-based PP and PE Auction Results
Trading sentiment on the Shenhua Auction Platform displayed significant divergence, with lacklustre interest in LLDPE parcels despite a sharp reduction in auction volumes. The coal-based producer struggled to offload inventory, managing to sell less than 30%
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes 21 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 |
750 |
729 |
7340 |
$893 |
7340-7400 |
$893-901 |
97.2% |
|
PPBC |
- |
- |
- |
- |
- |
- |
- |
|
LLDPE |
550 |
160 |
8100 |
$986 |
8100-8200 |
$986-998 |
29.1% |
|
*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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Trading sentiment on the Shenhua Auction Platform displayed significant divergence, with lacklustre interest in LLDPE parcels despite a sharp reduction in auction volumes. The coal-based producer struggled to offload inventory, managing to sell less than 30% of the 550 tons allocated for LLDPE—a clear indication of tepid demand in this segment.
Conversely, buyers appeared unfazed by the persistent decline in futures contracts on the Dalian Commodity Exchange, leading to robust transactions for homo-PP. This trend is particularly notable given the marginal price differential between the Shenhua Auction Platform and the domestic 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