16 April 2024 - Shenhua's coal-based PP and PE Auction Results
The recent biddings on the Shenhua Auction Platform have demonstrated mixed performance, with LLDPE achieving a 100% dealt rate whereas homo-PP and PPBC attained less transactions compared to Monday with roughly 70% deals only.
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 16 April 2024. 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 |
1552 |
1142 |
7400 |
$905 |
7460-7600 |
$912-929 |
73.6% |
|
PP Fiber |
- |
- |
- |
- |
- |
- |
- |
|
PPBC |
280 |
194 |
7650 |
$935 |
7650-7760 |
$935-949 |
69.3% |
|
LLDPE |
900 |
900 |
8240 |
$1007 |
8240-8370 |
$1007-1023 |
100.0% |
|
LDPE heavy duty |
- |
- |
- |
- |
- |
- |
- |
|
HDPE |
- |
- |
- |
- |
- |
- |
- |
|
*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 recent biddings on the Shenhua Auction Platform have demonstrated mixed performance, with LLDPE achieving a 100% dealt rate whereas homo-PP and PPBC attained fewer transactions compared to Monday with roughly 70% deals only.
The auctioned price for LLDPE surpassed yesterday's figures by CNY20/ton, while the dealt price observed an increase ranging from CNY10 – 20/ton. This upward trend can be attributed to the steadfast support received from the Dalian Commodity Exchange.
Purchasing activities predominantly remained on a need basis, with traders closely monitoring buying patterns in anticipation of the upcoming Labour Day, scheduled in the next two weeks. This cautious approach underscores the importance of strategic decision-making amid fluctuating market conditions.
Background:
Shenhua Baotou Coal Chemical Co is currently the largest coal-based polyolefins producer in China, operates under four subsidiaries, namely: 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 has an annual capacity of 2.65 million tons/year of PP, 750,000 tons/year of HDPE/LLDPE and 570,000 tons/year of LDPE.
Shenhua Baotou Coal Chemical Co is active in spot trading, while also conducting the daily auction for its cargoes daily between 10AM to 12PM on the official online platform that specifically designed for this purpose: https://www.e-chnenergy.com