05 February 2025 - Shenhua's coal-based PP and PE Auction Results
Shenhua’s first online auction session after the extended holiday concluded on a subdued note, reflecting weak sentiment on the Dalian Commodity Exchange and lingering concerns over trade tensions.
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes 05 February 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 |
1220 |
643 |
7100 |
$863 |
7240-7400 |
$880-900 |
52.7% |
|
PPBC |
150 |
0 |
7750 |
$942 |
- |
- |
0.0% |
|
LLDPE |
900 |
90 |
7950 |
$966 |
7950 |
$966 |
10.0% |
|
*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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Shenhua’s first online auction session after the extended holiday concluded on a subdued note, reflecting weak sentiment on the Dalian Commodity Exchange and lingering concerns over trade tensions. Market sources indicate that many buyers have yet to fully resume operations, contributing to limited purchasing activity.
Despite a CNY 160/ton ($22/ton) reduction in LLDPE prices from pre-holiday levels, buying interest remained muted, underscoring cautious market sentiment. Participants expect subdued demand to persist throughout the week, with buyers closely monitoring potential price adjustments before making further commitments.
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