29 November 2022 - Shenhua's coal-based PP and PE Auction Results
29 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 29 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 % |
|||
|
CNY/ton |
USD/ton |
CNY/ton |
USD/ton |
|||||
|
Combined and reported by CommoPlast |
||||||||
|
Homo-PP |
2080 |
2077 |
7450 |
$918 |
7500-7880 |
$924-971 |
99.9% |
|
|
PP Fiber |
- |
- |
- |
- |
- |
- |
- |
|
|
PPBC |
- |
- |
- |
- |
- |
- |
- |
|
|
LLDPE |
656 |
654 |
7850 |
$968 |
7850-8460 |
$968-1043 |
99.7% |
|
|
LDPE |
- |
- |
- |
- |
- |
- |
- |
|
|
HDPE |
100 |
100 |
8200 |
$1011 |
8200-8210 |
$1011-1012 |
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. |
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As the protests get quiet, Chinese bidders returned to the market to make additional purchases, especially after Shenhua offer additional discounts on both PP and PE cargoes compared to the previous session. Despite the strong sales results, it appears that the producer is not ready to implement any increases, which market participants attributed to the effort to deplete more cargoes by the month-end.
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