06 May 2024 - Shenhua's coal-based PP and PE Auction Results
Shenhua concluded the first auction session following the Labour Day break on a rather disappointing note, especially for homo-PP. The weakening futures contracts coupled with the falling energy complex weighed heavily on the trading sentiment.
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 06 May 2024. 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 |
1062 |
312 |
7350 |
$901 |
7480-7650 |
$917-938 |
29.4% |
|
PP Fiber |
- |
- |
- |
- |
- |
- |
- |
|
PPBC |
266 |
200 |
7700 |
$944 |
7750-7830 |
$950-960 |
75.2% |
|
LLDPE |
266 |
205 |
8350 |
$1023 |
8350-8400 |
$1023-1030 |
77.1% |
|
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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Shenhua concluded the first auction session following the Labour Day break on a rather disappointing note, especially for homo-PP. The weakening futures contracts coupled with the falling energy complex weighed heavily on the trading sentiment.
“Besides, a sliding futures market means arbitrage traders can offer buyers more competitive pricing than the auction platform. Many customers prefer this alternative source of supply, leading to the lack of transactions on the Shenhua Auction Platform,” a market source said.
In the meantime, Shenhua allocated smaller-than-usual quantities to the auction due to the ongoing maintenance shutdown at the 300,000 tons/year HDPE/LLDPE swing plant and the 300,000 tons/year PP plant.
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