06 March 2025 - Shenhua's coal-based PP and PE Auction Results
Following a modest rebound on the Dalian Commodity Exchange, Shenhua decided to maintain auction prices for both PP and PE cargoes unchanged from the previous session. Market sentiment cautiously improved after the government made fresh commitments to stimulate the domestic economy.
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 06 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 |
1650 |
1404 |
7080 |
$865 |
7080-7360 |
$865-900 |
85.1% |
|
LLDPE |
950 |
900 |
7950 |
$972 |
7960-8090 |
$973-989 |
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. |
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Following a modest rebound on the Dalian Commodity Exchange, Shenhua decided to maintain auction prices for both PP and PE cargoes unchanged from the previous session. Market sentiment cautiously improved after the government made fresh commitments to stimulate the domestic economy.
Amid this cautious optimism, buyers demonstrated an increased willingness to procure, with LLDPE purchases rising by 15.9% despite a 300-ton expansion in allocations. Reports suggested that local market participants favoured auction cargoes due to their more competitive pricing.
“However, as purchasing remains need-based, we remain cautious in evaluating the sustainability of this trend,” a 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.
Written by: Kat Yun Yun
Edited by: Derek Yong