06 February 2024 - Shenhua's coal-based PP and PE Auction Results
Interestingly, customers showed steady interest in LLDPE cargoes with more than 70% of deals achieved from the auction allocation.
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 06 February 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 |
1314 |
696 |
7000 |
$871 |
7100-7220 |
$884-899 |
53.0% |
|
PP Fiber |
- |
- |
- |
- |
- |
- |
- |
|
PPBC |
200 |
0 |
7100 |
$884 |
- |
- |
0.0% |
|
LLDPE |
950 |
670 |
7750 |
$965 |
7750-7960 |
$965-991 |
70.5% |
|
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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As trading sentiment continues to weaken, Shenhua allocated fewer cargoes to the daily auction session while maintaining a firm stance on the prices. Interestingly, customers showed steady interest in LLDPE cargoes with more than 70% of deals achieved from the auction allocation.
Transactions might decline further in the next couple of days, yet market participants do not foresee any major price adjustment citing the concerns over the supply outlook in the post-holiday period.
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