05 January 2024 - Shenhua's coal-based PP and PE Auction Results
In an interesting development, Chinese bidders continued to shy away from coal-based homo-PP on the final trading day of the week despite the CNY100/ton discount the producer provided on the auction prices.
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 05 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 |
2082 |
1171 |
7100 |
$882 |
7200-7400 |
$895-920 |
56.2% |
|
PP Fiber |
- |
- |
- |
- |
- |
- |
- |
|
PPBC |
- |
- |
- |
- |
- |
- |
- |
|
LLDPE |
600 |
600 |
7900 |
$982 |
7950-8090 |
$988-1006 |
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. |
|||||||
In an interesting development, Chinese bidders continued to shy away from coal-based homo-PP on the final trading day of the week despite the CNY100/ton discount the producer provided on the auction prices. The sluggish futures market is to be blamed for the falling purchasing appetite during the auction session.
Sources suggested that limited auction volumes for LLDPE, coupled with scarce availability of import cargoes, prompt buyers to source the needed cargoes from the Shenhua auction platform. Anticipations prevail that prices may continue to hover within a soft and range-bound territory in the near term.
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