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15 May 2023 - Shenhua's coal-based PP and PE Auction ResultsThe coal-based producer offered CNY120/ton discount on LLDPE cargoes and CNY30/ton on homo-PP, yet Chinese bidders prefer to wait on the sideline fearing further reductions ahead. |
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Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 15 May 2023. The following table showed the details of the auction results for prime grade only:
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Product |
Auction Volume |
Deal Volume |
Auction Prices |
Deal Prices |
Deal % |
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|
CNY/ton |
USD/ton |
CNY/ton |
USD/ton |
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|
Combined and reported by CommoPlast |
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|
Homo-PP |
2132 |
589 |
7020 |
$893 |
7100-7230 |
$903-919 |
27.6% |
|
PP Fiber |
- |
- |
- |
- |
- |
- |
- |
|
PPBC |
- |
- |
- |
- |
- |
- |
- |
|
LLDPE |
750 |
214 |
7780 |
$989 |
7850-8020 |
$998-1020 |
28.5% |
|
LDPE |
- |
- |
- |
- |
- |
- |
- |
|
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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Given the intensifying economic woe which impacts the demand outlook for crude oil and commodity, trade on the Shenhua auction platform remains disappointing on the first day of the week. The coal-based producer offered CNY120/ton discount on LLDPE cargoes and CNY30/ton on homo-PP, yet Chinese bidders prefer to wait on the sideline fearing further reductions ahead.
At the time of this report, key PP and LLDPE contracts on Dalian Commodity Exchange nosedived to multi-year lows, further encouraging buyers to remain cautious.
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
Country
China
