25 February 2025 - Shenhua's coal-based PP and PE Auction Results
Trading activity on the Shenhua Auction Platform saw a modest rebound from the previous session, driven primarily by price reductions from the coal-based producer. Auction prices for LLDPE were lowered by CNY 10-90/ton in an effort to stimulate buying interest
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 25 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 |
1550 |
1431 |
7150 |
$872 |
7180-7360 |
$875-897 |
92.3% |
|
PPBC |
72 |
0 |
7600 |
$926 |
- |
- |
0.0% |
|
LLDPE |
550 |
500 |
8020 |
$978 |
8040-8090 |
$980-986 |
90.9% |
|
*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 activity on the Shenhua Auction Platform saw a modest rebound from the previous session, driven primarily by price reductions from the coal-based producer. Auction prices for LLDPE were lowered by CNY 10-90/ton in an effort to stimulate buying interest, yielding some success.
Nevertheless, there was still a prevalent cautiousness in the market, which was reflected in an uptick in purchasing activities only after discounts were provided. Market insiders expected the current market condition to persist until there is a more substantial recovery in end-product demand.
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