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21 November 2023 - Shenhua's coal-based PP and PE Auction ResultsTraders emphasized that the purchases are primarily driven by the need for replenishment, and while LLDPE deals appeared improved, they were not as favorable as PP. |
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Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 21 November 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 |
1430 |
1224 |
7320 |
$907 |
7320-7650 |
$907-948 |
85.6% |
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PP Fiber |
- |
- |
- |
- |
- |
- |
- |
|
PPBC |
300 |
184 |
7320 |
$907 |
7330-7610 |
$909-943 |
61.3% |
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LLDPE |
598 |
520 |
7850 |
$973 |
7850-8150 |
$973-1010 |
87.0% |
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LDPE heavy duty |
- |
- |
- |
- |
- |
- |
- |
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HDPE |
300 |
184 |
7320 |
$907 |
7330-7610 |
$909-943 |
61.3% |
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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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The PP auction price decreased by CNY20/ton compared to yesterday, while LLDPE remained stable. However, traders noted that prices still require discounts to attract deals. Traders emphasized that the purchases are primarily driven by the need for replenishment, and while LLDPE deals appeared improved, they were not as favourable as PP.
Market participants caution that the ongoing drop in local and DCE prices, coupled with the continued appreciation of the RMB currency, may impact buying appetite in the near term. Consequently, traders are closely monitoring the trend with a cautious approach, as market dynamics continue to evolve.
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
