2019 November PP Resources Auction at Shenhua Group

SCI99

2019-12-09

2019 November PP Resources Auction at Shenhua Group

Highlights

Shenhua Group, the first commissioned coal-to-PP enterprise in domestic PP industry, including subsidiaries such as Shenhua Ningxia Coal Industry, China Shenhua (Baotou) Charcoal Chemical, Shenhua Yulin Energy and Shenhua (Xinjiang) Group. Considerable attention was paid to the PP auction situation at Shenhua Group, so that it could help market players to learn about the transactions.

Taking PP raffia at Shenhua Group as an example, the average turnover ratio hovered at 56% in November, up 1% from last month. It hovered around 16%-87% in November, with a larger fluctuation range. China’s PP market prices fluctuated downwards this month, restricted by the weak downstream demand. Besides, the PP futures prices mostly slipped, hitting the spot PP market. Most market players held a bearish stance about the future PP market, as the downstream demand was sluggish.

According to the statistics, the overall auction volume of PP resources at Shenhua Group was 53,420mt in November, up 27.01% M-O-M. The turnover ratio of copo PP injection and homo PP injection decreased by 10% each. The grade of homo PP auctioned was K4860 at Shenhua (Xinjiang) Group, and the auction volume declined this month. In November, the turnover ratio of PP raffia slipped by 2% M-O-M, while the auction volume increased by 27% M-O-M. The transaction of PP fiber was favorable, with auction volume rising by 98% from October. At Shenhua Ningxia Coal Industry, there were no resources threw into the market for auction

The turnover ratio in each region declined in November. The first three regions with high auction volume were still North China, East China and Northwest China. Therein, the growth rate of auction volume in North China was the highest and reached 83%. The first three regions with high transaction volume were still North China, Northwest China and East China. The turnover ratio in East China in November increased by 3% M-O-M due to the flexible deals guided by the futures market.

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