CommoPlast | Article - [FREE] 23 September 2022 - 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 23 September 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	1390	1209	7900	$985	7900-8330		$985-1038	87.0%
PP Fiber	-	-	-	-	-		-	-
PPBC	-	-	-	-	-		-	-
LLDPE	450	450	8100	$1010	8170-8490		$1018-1058	100.0%
LDPE	-	-	-	-	-		-	-
HDPE	250	250	8000	$997	8050-8060		$1003-1005	100.0%
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.

In spite of the dwindling futures market, Chinese bidders remain active on the Shenhua auction platform. Deals for PE are particularly strong, however, sources said that the substantially reduced availability contributed to the high percentage of transactions.

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