04 March 2025 - Shenhua's coal-based PP and PE Auction Results
The slowdown in purchasing activity was particularly evident in the LLDPE sector, where transaction volumes weakened despite reduced allocations. Only 54.6% of available cargoes were sold, marking a 40.1% drop from the previous morning session.
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 04 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 |
1550 |
1426 |
7100 |
$863 |
7100-7390 |
$863-898 |
92.0% |
|
LLDPE |
950 |
519 |
7950 |
$966 |
7990-8090 |
$971-983 |
54.6% |
|
*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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The Shenhua Auction Platform closed its morning session with marginally firmer offers compared to the previous trading day, diverging from softer trends on the Dalian Commodity Exchange. The move was met with buyer resistance, as participants remained wary ahead of key macroeconomic developments.
The slowdown in purchasing activity was particularly evident in the LLDPE sector, where transaction volumes weakened despite reduced allocations. Only 54.6% of available cargoes were sold, marking a 40.1% drop from the previous morning session.
“The coal-based producer’s decision to raise LLDPE auction prices stands in sharp contrast to weak futures and a stable spot market. With declining energy prices and intensifying trade tensions, buyer sentiment remains cautious, resulting in poor price acceptance,” a market source said.
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