24 January 2024 - Shenhua's coal-based PP and PE Auction Results
After finalizing the purchases, buyers are adopting a careful approach and refraining from active engagement.
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 24 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 |
1600 |
1224 |
7140 |
$890 |
7250-7390 |
$904-921 |
76.5% |
|
PP Fiber |
- |
- |
- |
- |
- |
- |
- |
|
PPBC |
300 |
300 |
7400 |
$922 |
7440-7500 |
$927-935 |
100.0% |
|
LLDPE |
850 |
800 |
8100 |
$1010 |
8140-8200 |
$1015-1022 |
94.1% |
|
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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After finalizing the purchases, buyers are adopting a careful approach and refraining from active engagement. However, ongoing need-based demand is sustaining auction deals, particularly for LLDPE, which is performing better than homo-PP. The auction price for homo-PP has increased by CNY40/ton from yesterday, facing some resistance from customers.
Market players view this resistance as normal and anticipate continued orders for pre-holiday cargoes in the coming days, as converters are expected to start their holiday shutdown by the end of next week. Despite the lower auction volume and ongoing low inventory pressure, prices are anticipated to hover around the current levels 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