18 January 2024 - Shenhua's coal-based PP and PE Auction Results
Market players are speculating on a potentially stronger trend for PE compared to PP due to higher import dependency for PE, coupled with a weak export window for PP.
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 18 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 |
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|
Homo-PP |
2500 |
1732 |
7100 |
$882 |
7100-7350 |
$882-914 |
69.3% |
|
PP Fiber |
- |
- |
- |
- |
- |
- |
- |
|
PPBC |
100 |
0 |
7160 |
$890 |
- |
- |
0.0% |
|
LLDPE |
1100 |
1100 |
7880 |
$979 |
7890-8120 |
$981-1009 |
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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Market players are speculating on a potentially stronger trend for PE compared to PP due to higher import dependency for PE, coupled with a weak export window for PP. This speculation aligns with auction sales today, where the auction price for homo-PP is reported to be CNY50/ton lower than the previous day.
However, the observed decrease is linked to the inclusion of an additional warehouse in today's auction, which was not part of the proceedings the previous day, resulting in an overall lower price. In contrast, deals for LLDPE remain robust, while PP shows a weaker performance compared to the previous day. Market players remain cautious despite the potential PE strength, as the Lunar New Year holiday approaches.
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