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21 September 2023 - Shenhua's coal-based PP and PE Auction ResultsTo compensate for the downward pressure, Shenhua stoked up demand by offering CNY60/ton discount on deal prices for homo-PP and CNY70 – 140/ton on LLDPE |
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Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 21 September 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 |
1388 |
1076 |
7750 |
$941 |
7900-7990 |
$959-970 |
77.5% |
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PP Fiber |
- |
- |
- |
- |
- |
- |
- |
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PPBC |
397 |
144 |
7800 |
$947 |
8100 |
$983 |
36.3% |
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LLDPE |
516 |
376 |
8200 |
$995 |
8210-8400 |
$997-1020 |
72.9% |
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LDPE heavy duty |
- |
- |
- |
- |
- |
- |
- |
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HDPE |
150 |
0 |
8080 |
$981 |
- |
- |
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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Despite the continued falling Dalian Commodity Exchange toward the weekend, transactions on the Shenhua auction platform are still satisfactory. To compensate for the downward pressure, Shenhua stoked up demand by offering a CNY60/ton discount on deal prices for homo-PP and CNY70 – 140/ton on LLDPE compared to the previous session.
Chinese bidders become increasingly cautious about additional purchases, particularly among arbitrage traders, who are highly sensitive to the movement on the futures market. Sources believed that without some reductions in deal prices, purchasing interest on the Shenhua auction platform might nosedive.
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
