07 February 2024 - Shenhua's coal-based PP and PE Auction Results
Thanks to the sharp rebound on the Dalian Commodity Exchange, transactions for coal-based PP and PE cargoes on the Shenhua auction platform picked up significantly from the previous session.
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 07 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 |
2116 |
2033 |
7000 |
$871 |
7000-7330 |
$871-912 |
96.1% |
|
PP Fiber |
- |
- |
- |
- |
- |
- |
- |
|
PPBC |
100 |
33 |
7100 |
$884 |
7100 |
$884 |
33.0% |
|
LLDPE |
1150 |
1150 |
7750 |
$965 |
7780-8080 |
$968-1006 |
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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Thanks to the sharp rebound on the Dalian Commodity Exchange, transactions for coal-based PP and PE cargoes on the Shenhua auction platform picked up significantly from the previous session. According to market sources, although converters have largely wound down operations, many arbitrage traders are still present, looking for last-minute deals.
With the futures market officially off on Friday, 9 February 2024, it is expected that trading activities on the Shenhua auction platform might grind to a halt toward the end of the week.
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