17 January 2024 - Shenhua's coal-based PP and PE Auction Results
Trading sentiment on the Shenhua auction platform weakened slightly in today’s session though the number of deals achieved is still deemed satisfactory.
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 17 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 |
2000 |
1499 |
7200 |
$894 |
7200-7350 |
$894-912 |
75.0% |
|
PP Fiber |
- |
- |
- |
- |
- |
- |
- |
|
PPBC |
100 |
0 |
7180 |
$891 |
- |
- |
0.0% |
|
LLDPE |
1150 |
1114 |
7900 |
$981 |
7900-8130 |
$981-1009 |
96.9% |
|
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 weakened slightly in today’s session though the number of deals achieved is still deemed satisfactory. Sources said that due to the stronger dependency on imports, which has seen limited new offers in recent days, Chinese buyers are more willing to procure coal-based LLDPE film cargoes despite another CNY20/ton rise in auction prices.
Market participants suggest that following several days of active purchases, many have already fulfilled their near-term needs, leading to a more sluggish sentiment as buyers are adopting a wait-and-see approach.
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