08 May 2023 - Shenhua's coal-based PP and PE Auction Results
Despite recording some sales, the post-holiday purchase activity is lesser than expected as buyers continue to remain vigilant with the weak energy market curtailing the overall buyer’s confidence.
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 08 May 2023. 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 |
1900 |
800 |
7180 |
$920 |
7250-7380 |
$928-945 |
42.1% |
|
PP Fiber |
- |
- |
- |
- |
- |
- |
- |
|
PPBC |
- |
- |
- |
- |
- |
- |
- |
|
LLDPE |
550 |
400 |
8010 |
$1027 |
8100 |
$1037 |
72.7% |
|
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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The Shenhua auction platform started this week’s trading on a relatively healthier note compared to the previous session with some need basis replenishments undertaken by buyers. The comparatively lower prices supported sales today with homo-PP being CNY20/ton lower while LLDPE was CNY40/ton lower than the last session. Despite recording some sales, the post-holiday purchase activity is lesser than expected as buyers continue to remain vigilant with the weak energy market curtailing the overall buyer’s confidence.
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