17 February 2025 - Shenhua's coal-based PP and PE Auction Results
The Shenhua Auction Platform concluded the week’s first trading session on a firm footing, bolstered by resilient futures performance on the Dalian Commodity Exchange. Despite this strength, the coal-based producer introduced a CNY 10/ton discount on PP and LLDPE cargoes
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 17 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 |
1450 |
1450 |
7180 |
$876 |
7180-7400 |
$876-903 |
100.0% |
|
PPBC |
150 |
99 |
7300 |
$891 |
7300 |
$891 |
66.0% |
|
LLDPE |
650 |
649 |
7900 |
$964 |
7950-8180 |
$970-998 |
99.8% |
|
*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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The Shenhua Auction Platform concluded the week’s first trading session on a firm footing, bolstered by resilient futures performance on the Dalian Commodity Exchange. Despite this strength, the coal-based producer introduced a CNY 10/ton discount on PP and LLDPE cargoes, likely to facilitate sales amid cautious market sentiment.
Market participants reported a prevailing reluctance among buyers, driven by ongoing concerns over new plant startups, which continue to exert pressure on the outlook.
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: Muhammad Hafiz