13 February 2025 - Shenhua's coal-based PP and PE Auction Results
Shenhua concluded today’s auction session with uneven results as attempts to raise prices were undermined by weaker futures performance on the Dalian Commodity Exchange.
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 13 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 % |
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|
CNY/ton |
USD/ton |
CNY/ton |
USD/ton |
||||
|
Combined and reported by CommoPlast |
|||||||
|
Homo-PP |
1550 |
506 |
7150 |
$866 |
7150-7400 |
$866-896 |
32.6% |
|
LLDPE |
750 |
636 |
7880 |
$954 |
7930-8020 |
$960-971 |
84.8% |
|
*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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Shenhua concluded today’s auction session with uneven results as attempts to raise prices were undermined by weaker futures performance on the Dalian Commodity Exchange.
The response to homo-PP was notably weak, with deal volumes dropping sharply from the previous session, highlighting subdued market sentiment. In contrast, LLDPE trading retained momentum, supported by a visible decline in supply. Market participants attributed the relative strength in LLDPE to Shenhua’s strategic reallocation of volumes to the offline market, particularly in northern China, which eased supply pressures.
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