03 March 2025 - Shenhua's coal-based PP and PE Auction Results
The Shenhua Auction Platform commenced the month’s trading with more competitive offers, diverging from the firmer trends observed on the Dalian Commodity Exchange. The producer’s strategy appeared aimed at sustaining purchasing momentum, particularly as allocations for both grades increased.
Shenhua Baotou Coal Chemical Co concluded the auction session for its coal-based PP and PE cargoes on 03 March 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 |
1450 |
1450 |
7090 |
$861 |
7110-7380 |
$863-896 |
100.0% |
|
PPBC |
- |
- |
- |
- |
- |
- |
- |
|
LLDPE |
750 |
710 |
7900 |
$959 |
7970-8150 |
$9968-989 |
94.7% |
|
*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. |
|||||||
The Shenhua Auction Platform commenced the month’s trading with more competitive offers, diverging from the firmer trends observed on the Dalian Commodity Exchange. The producer’s strategy appeared aimed at sustaining purchasing momentum, particularly as allocations for both grades increased.
“The stronger futures market prompted active engagement from buyers,” a local market player noted. “However, we remain cautious as the local sector continues to trade under relatively subdued conditions.”
In downstream markets, converters faced persistent challenges due to weak end-product orders, with sentiment further pressured by the US government’s threat of another 10% tariff on Chinese goods. These headwinds raised questions over the auction platform’s near-term ability to sustain robust cargo depletions.
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