26 February 2025 - Shenhua's coal-based PP and PE Auction Results
Shenhua's auction session concluded on a mixed note today, with transactions for homo-PP experiencing a sharp decline compared to the previous session. Market participants attributed the weaker performance to the downturn in the futures market
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 26 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 |
1250 |
567 |
7150 |
$872 |
7150-7320 |
$872-892 |
45.4% |
|
PPBC |
72 |
0 |
7550 |
$920 |
- |
- |
0.0% |
|
LLDPE |
550 |
500 |
8010 |
$976 |
8010-8050 |
$976-981 |
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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Shenhua's auction session concluded on a mixed note today, with transactions for homo-PP experiencing a sharp decline compared to the previous session. Market participants attributed the weaker performance to the downturn in the futures market, which dampened arbitrage activity and limited buying interest.
“The spot market registered a CNY 50/ton decrease, yet Shenhua maintained firm pricing without offering discounts. This rigid stance met strong resistance from buyers,” a trader commented.
In contrast, a modest price concession of CNY 30-40/ton on coal-based LLDPE film facilitated a deal completion rate of nearly 91%, highlighting the market’s responsiveness to even slight pricing adjustments.
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