12 February 2025 - Shenhua's coal-based PP and PE Auction Results
Transactions on the Shenhua Auction Platform softened slightly compared to the previous trading day, with LLDPE seeing the most notable decline, though overall activity remained satisfactory.
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes for 12 February 2025. The following table shows 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 |
1620 |
1578 |
7120 |
$862 |
7160-7420 |
$867-898 |
97.4% |
|
PPBC |
150 |
149 |
7300 |
$884 |
7300-7600 |
$884-920 |
99.3% |
|
LLDPE |
1150 |
912 |
7850 |
$950 |
7880-8180 |
$954-990 |
79.3% |
|
*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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Transactions on the Shenhua Auction Platform softened slightly compared to the previous trading day, with LLDPE seeing the most notable decline, though overall activity remained satisfactory. The coal-based producer’s attempt to lift LLDPE prices in response to stronger futures on the Dalian Commodity Exchange failed to attract sufficient buying interest.
A market source noted, “Converters have yet to fully resume operations. Even in the domestic spot market, higher LLDPE film prices quickly deterred purchasing activities.”
Looking ahead, market sentiment remains cautious regarding the sustainability of the recent rebound, with participants closely monitoring demand recovery, particularly in northern China.
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