CommoPlast | Article - 25 November 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 25 November 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	2312	1459	7450	$921	7450-7890		$921-975	63.1%
PP Fiber	-	-	-	-	-		-	-
PPBC	-	-	-	-	-		-	-
LLDPE	656	559	7920	$979	7920-8460		$979-1046	85.2%
LDPE	-	-	-	-	-		-	-
HDPE	100	100	8150	$1007	8150		$1007	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.

While purchasing interest remains relatively strong on the final trading day of the week, the renewed lockdown in Beijing severely hit the market confidence. Regardless of the strong sales results the previous day, Shenhua steps up the effort to deplete more quantity ahead of the month-end closing and the potentially softer demand in the coming week. Deals for LLDPE dropped CNY80/ton from the previous day.

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