10 May 2023 - Shenhua's coal-based PP and PE Auction Results
The recent theme of sourcing need basis continued, this time for homo-PP showcasing the stringent approach by market players despite the grade being CNY10/ton lower than the last session.
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 10 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 |
2130 |
1226 |
7150 |
$913 |
7150-7380 |
$913-942 |
57.6% |
|
PP Fiber |
- |
- |
- |
- |
- |
- |
- |
|
PPBC |
- |
- |
- |
- |
- |
- |
- |
|
LLDPE |
700 |
142 |
7950 |
$1015 |
8000-8110 |
$1022-1036 |
20.3% |
|
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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Trading on the Shenhua auction platform continued its fragile stance as further disappointing sales results continue to hamper the overall market sentiment. The recent theme of sourcing need basis continued, this time for homo-PP showcasing the stringent approach by market players despite the grade being CNY10/ton lower than the last session. LLDPE dropped as much as CNY50/ton today but even then, auction deals lingered around 20% and the expectation is for sales to remain lacklustre for the near term.
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