18 February 2025 - Shenhua's coal-based PP and PE Auction Results
Despite a CNY 90/ton increase in LLDPE auction prices, buying interest remained resilient, driven by renewed demand from the agricultural film sector. Manufacturers in this segment are progressively ramping up operating rates
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 18 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 |
1750 |
1636 |
7180 |
$874 |
7190-7390 |
$875-900 |
93.5% |
|
PPBC |
50 |
50 |
7600 |
$925 |
7600 |
$925 |
100.0% |
|
LLDPE |
750 |
700 |
7990 |
$973 |
8000-8100 |
$974-986 |
93.3% |
|
*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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Trading sentiment on the Shenhua Auction Platform remained robust on Tuesday, underpinned by strength in the Dalian Commodity Exchange and the producer’s competitive pricing strategies.
Despite a CNY 90/ton increase in LLDPE auction prices, buying interest remained resilient, driven by renewed demand from the agricultural film sector. Manufacturers in this segment are progressively ramping up operating rates following the extended Lunar New Year holiday, further reinforcing the market’s bullish outlook.
However, cautious sentiment persists among market participants, as additional price increases face headwinds from newly commissioned capacity, which continues to exert pressure on the 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