16 January 2024 - Shenhua's coal-based PP and PE Auction Results
For the second day in a row, Shenhua concluded their auction sales with strong results, driven by the rebound on the Dalian Commodity Exchange and pre-Lunar New Year replenishment activities.
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 16 January 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 |
2100 |
1993 |
7200 |
$895 |
7200-7360 |
$895-915 |
94.9% |
|
PP Fiber |
- |
- |
- |
- |
- |
- |
- |
|
PPBC |
100 |
100 |
7160 |
$890 |
7170-7180 |
$891-892 |
100.0% |
|
LLDPE |
1000 |
1000 |
7880 |
$979 |
7890-8110 |
$981-1008 |
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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For the second day in a row, Shenhua concluded their auction sales with strong results, driven by the rebound on the Dalian Commodity Exchange and pre-Lunar New Year replenishment activities. The coal-based producer managed to fully sell out LLDPE cargo despite a CNY30/ton hike in auction prices. On the other hand, homo-PP cargoes registered a CNY50/ton increase day-on-day.
Sources believed that the pent-up demand might be sustained in the near term, though any sharp increases might face stiff resistance from buyers.
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