CommoPlast Article

Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 21 March 2024. The following table showed the details of the auction results for prime grade only:

Product	Auction Volume	Deal Volume	Auction Prices		Deal Prices		Deal %
Product	Auction Volume	Deal Volume	CNY/ton	USD/ton	CNY/ton	USD/ton	Deal %
*Combined and reported by CommoPlast*
Homo-PP	1950	1900	7200	$885	7220-7510	$887-923	97.4%
PP Fiber	-	-	-	-	-	-	-
PPBC	250	200	7450	$916	7520-7540	$924-927	80.0%
LLDPE	1350	900	8150	$1002	8170-8260	$1004-1015	66.7%
LDPE heavy duty	-	-	-	-	-	-	-
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.

While Shenhua concluded the auction session with decent results, there are signs of the market losing momentum. Not only did the number of deals drop from the previous day, but the deal price for homo-PP also weakened by CNY60/ton.

Chinese bidders are still prepared to make replenishment; however, pricing matter seems to be of concern at the moment.

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

21 March 2024 - Shenhua's coal-based PP and PE Auction Results