CommoPlast | Article - [FREE] 26 May 202 - Shenhua's coal-based PP and PE Auction Results

Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 26 May 2022. 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	2391	2391	8220	$1082	8240-8590		$1085-1131	100.0%
PP Fiber	-	-	-	-	-		-	-
PPBC	-	-	-	-	-		-	-
LLDPE	1082	982	8550	$1126	8580-8700		$1130-1146	90.8%
LDPE	-	-	-	-	-		-	-
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.

The number of transactions for both PP and PE on the Shenhua auction platform picks up sharply toward the end of the week after the government vows to stimulate economic growth that pushes the futures market higher. However, deal prices have not changed from the previous session.

Background:

Shenhua Baotou Coal Chemical Co is currently the largest coal-based polyolefins producer in China, operating 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