24 February 2025 - Shenhua's coal-based PP and PE Auction Results
Nonetheless, market participants remained vigilant toward the possibility of seasonal shifts in demand. In the homo-PP sector, market participants have noted a modest uptick of interest in agricultural packaging
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 24 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 |
1239 |
7100 |
$868 |
7200-7360 |
$880-900 |
70.8% |
|
PPBC |
82 |
10 |
7600 |
$929 |
7600 |
$929 |
12.2% |
|
LLDPE |
550 |
510 |
8020 |
$980 |
8030-8180 |
$982-1000 |
92.7% |
|
*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 morning session on a weaker note, weighed down by losses on the Dalian Commodity Exchange. Reflecting the subdued sentiment, purchasing activity remained sluggish, as downstream sectors struggled to break through the holiday lull.
"While LLDPE uptake has shown a slight improvement from the previous session, this may be due to the smaller allocation volumes," one market participant observed.
Nonetheless, market participants remained vigilant toward the possibility of seasonal shifts in demand. In the homo-PP sector, market participants have noted a modest uptick of interest in agricultural packaging, anticipating further potential improvement as the seeding season approaches.
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: Derek Yong