18 October 2022 - Shenhua's coal-based PP and PE Auction Results
18 October 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 18 October 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 % |
|||
|
CNY/ton |
USD/ton |
CNY/ton |
USD/ton |
|||||
|
Combined and reported by CommoPlast |
||||||||
|
Homo-PP |
2300 |
879 |
7650 |
$940 |
7850-8110 |
$965-997 |
38.2% |
|
|
PP Fiber |
- |
- |
- |
- |
- |
- |
- |
|
|
PPBC |
- |
- |
- |
- |
- |
- |
- |
|
|
LLDPE |
850 |
335 |
7900 |
$971 |
8050-8420 |
$989-1035 |
39.4% |
|
|
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. |
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There have not been any major changes in terms of trading sentiment as market participants proceed cautiously, waiting for clearer direction from the government pertaining to the Zero-Covid policy and economic stimulus. Paltry demand forced Shenhua to offer CNY50-70/ton discounts on both homo-PP and LLDPE to close deals, but the reductions are obviously insufficient.
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