20 February 2025 - Shenhua's coal-based PP and PE Auction Results
Trading activity on the Shenhua Auction Platform softened slightly, weighed down by weaker key futures contracts on the Dalian Commodity Exchange. However, a reduced auction allocation helped mitigate the impact
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 20 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 |
1650 |
1463 |
7200 |
$875 |
7210-7400 |
$876-900 |
88.7% |
|
PPBC |
50 |
0 |
7600 |
$924 |
- |
- |
0.0% |
|
LLDPE |
662 |
612 |
8000 |
$972 |
8050-8110 |
$979-986 |
92.4% |
|
*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. |
|||||||
Trading activity on the Shenhua Auction Platform softened slightly, weighed down by weaker key futures contracts on the Dalian Commodity Exchange. However, a reduced auction allocation helped mitigate the impact, keeping overall transaction volumes at a satisfactory level for both PP and LLDPE.
Market reports indicate that the coal-based producer has been diverting a larger share of LLDPE film supply to offline sales, particularly in Northern China, to meet rising agricultural demand. This shift has led to a lower allocation for the online auction, alleviating pressure on auction prices and supporting market stability.
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: Rochelle Nguyen