28 February 2025 - Shenhua's coal-based PP and PE Auction Results
The Shenhua Auction Platform closed the month on a strong footing, supported by the firmness on the Dalian Commodity Exchange. Further support arose from the producer’s thinner allocations, stemming from robust purchasing activity in the previous session.
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 28 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 |
300 |
293 |
7310 |
$887 |
7340-7370 |
$892-896 |
97.7% |
|
PPBC |
- |
- |
- |
- |
- |
- |
- |
|
LLDPE |
200 |
193 |
8040 |
$977 |
8080-8090 |
$982-983 |
96.5% |
|
*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. |
|||||||
The Shenhua Auction Platform closed the month on a strong footing, supported by the firmness on the Dalian Commodity Exchange. Further support arose from the producer’s thinner allocations, stemming from robust purchasing activity in the previous session.
In an apparent effort to accelerate inventory depletion, the producer adopted more aggressive pricing strategies on the latest trading day. Market sources also indicate that some cargoes were redirected to off-platform sales.
"Given the strong end-of-month transactions, there is potential for a stable start to March," one market participant noted.
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: Derek Yong