CommoPlast | Article - 10 September 2021: Auction sales result for Shenhua's coal-based PP and PE

Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 10 September 2021. 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	1396	983	8200	$1125	8270-8560	$1135-1174	70.4%
PP Fiber	-	-	-	-	-	-	-
PPBC	-	-	-	-	-	-	-
LLDPE	350	60	8470	$1162	8470-8610	$1162-1181	17.1%
LDPE	-	-	-	-	-	-	-
HDPE	300	0	8100	$1111	-	-	0.0%
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.

Shenhua auction ended the week on a disappointing note following four consecutive sessions of active trading sentiment. Allocations for auction continue to decline, however, buyers seem less interested in securing additional cargoes after the drop in the futures market.

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-shenhua.com