27 February 2025 - Shenhua's coal-based PP and PE Auction Results
In the LLDPE segment, discounts of up to CNY30/ton spurred buying interest, leading to a complete depletion of the day’s allocations. This marked the first sell-out since the start of the year, reflecting hints of potential post-holiday demand recovery.
Shenhua Baotou Coal Chemical Co. concluded the auction session for its coal-based PP and PE cargoes on 27 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 |
1522 |
7120 |
$867 |
7160-7350 |
$872-895 |
98.2% |
|
PPBC |
72 |
72 |
7500 |
$913 |
7500 |
$913 |
100.0% |
|
LLDPE |
500 |
500 |
8000 |
$974 |
8030-8050 |
$977-980 |
100.0% |
|
*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 continued to improve, supported by gains in the Dalian Commodity Exchange. However, sentiment remained cautious as softer price adjustments reflected ongoing weakness in the local spot market.
In the LLDPE segment, discounts of up to CNY30/ton spurred buying interest, leading to a complete depletion of the day’s allocations. This marked the first sell-out since the start of the year, reflecting hints of potential post-holiday demand recovery. However, market participants remained wary, as the limited auction volume may have contributed to the strong sales results.
The substantial availability of PP auction volumes at the end of the month has raised concerns about underlying demand for this grade and the potential pricing strategy moving forward, particularly if the coal-based producer fails to deplete its monthly auction allocations.
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