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17 July 2023 - Shenhua's coal-based PP and PE Auction ResultsFollowing a strong rally last week, Shenhua raised offers for homo-PP by CNY100/ton and LLDPE by CNY90/ton right on the first auction session this week, which could not be any worse timing. |
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Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 17 July 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 |
1800 |
98 |
7080 |
$874 |
7200-7360 |
$889-908 |
5.4% |
|
PP Fiber |
- |
- |
- |
- |
- |
- |
- |
|
PPBC |
- |
- |
- |
- |
- |
- |
- |
|
LLDPE |
750 |
43 |
7950 |
$981 |
8000 |
$987 |
5.7% |
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LDPE heavy duty |
- |
- |
- |
- |
- |
- |
- |
|
HDPE |
388 |
0 |
7900 |
$975 |
- |
- |
0.0% |
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*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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Following a strong rally last week, Shenhua raised offers for homo-PP by CNY100/ton and LLDPE by CNY90/ton right on the first auction session this week, which could not be any worse timing.
Key PP and LLDPE contracts on Dalian Commodity Exchange nosedived throughout the morning session following disappointing GDP data signalling the inertia of economic recovery progress.
Transaction for all available grades for auction fell drastically as a result as Chinese bidders shy away from offtaking additional quantity when the market outlook weakened.
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
