29 January 2024 - Shenhua's coal-based PP and PE Auction Results
As more buyers started to take off for the Lunar New Year holiday, Shenhua escalated the effort to deplete more on-hand inventory ahead of the month-end closing.
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 29 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 |
1486 |
1305 |
7100 |
$875 |
7130-7400 |
$879-912 |
87.8% |
|
PP Fiber |
- |
- |
- |
- |
- |
- |
- |
|
PPBC |
250 |
200 |
7400 |
$912 |
7430-7460 |
$916-919 |
80.0% |
|
LLDPE |
866 |
866 |
7950 |
$980 |
7960-8220 |
$981-1013 |
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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Ending today's auction on the Shenhua Auction Platform with a slightly lower auction price than last Friday, 26 January 2024 with prices at CNY20/ton lower and CNY50/ton lower for commodities homo-PP and LLDPE respectively. However, still a strong and positive outlook as volumes dealt for all three commodities were favourably high considering more buyers have started to take their Lunar New Year holidays.
On the other hand, sources expect more measures ahead to facilitate the selling process as most buyers have switched to a holiday mood.
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