04 January 2024 - Shenhua's coal-based PP and PE Auction Results
Trading sentiment on the Shenhua auction platform remained dwindling toward the weekend and despite the 100% deals reported for coal-based LLDPE film cargoes, it is important to note that auction quantity for this grade stood at merely 500 tons.
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 04 January 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 |
2332 |
1442 |
7200 |
$890 |
7240-7420 |
$895-917 |
61.8% |
|
PP Fiber |
- |
- |
- |
- |
- |
- |
- |
|
PPBC |
- |
- |
- |
- |
- |
- |
- |
|
LLDPE |
500 |
500 |
7920 |
$979 |
7950-8120 |
$983-1004 |
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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Trading sentiment on the Shenhua auction platform remained dwindling toward the weekend and despite the 100% deals reported for coal-based LLDPE film cargoes, it is important to note that auction quantity for this grade stood at merely 500 tons. The producer attempted to attract buyers by lowering the auction price by CNY20/ton from the previous day.
Concerns about the near-term outlook are emerging among industry participants, with a weakening confidence level. Some anticipate that additional discounts may be necessary to stimulate sales if demand remains unchanged or fails to improve in the lead-up to the Lunar New Year.
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