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04 December 2023 - Shenhua's coal-based PP and PE Auction ResultsThe coal-based polyolefins session ended with disappointing results, particularly for homo-PP stemming from the producer’s attempt to lift the price by CNY180/ton from the previous session |
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Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 04 December 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 |
1280 |
632 |
7380 |
$916 |
7390-7470 |
$917-927 |
49.4% |
|
PP Fiber |
- |
- |
- |
- |
- |
- |
- |
|
PPBC |
166 |
0 |
7370 |
$915 |
- |
- |
0.0% |
|
LLDPE |
630 |
530 |
7720 |
$958 |
7880-8000 |
$978-993 |
84.1% |
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LDPE heavy duty |
- |
- |
- |
- |
- |
- |
- |
|
HDPE |
100 |
100 |
7850 |
$974 |
7850 |
$974 |
100.0% |
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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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The coal-based polyolefins session ended with disappointing results, particularly for homo-PP stemming from the producer’s attempt to lift the price by CNY180/ton from the previous session on a weak fundamental. Conversely, LLDPE managed to fetch deals above 80% due to slight discounts of CNY20/ton in place. There are speculations that producers might be testing market responses by offering slightly higher prices for PP, exercising caution while monitoring the potential for a rebound in the near term.
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
