12 May 2023 - Shenhua's coal-based PP and PE Auction Results
Shenhua concluded another auction session with disappointing results even though the producer agreed to reduce auction prices.
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 12 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 |
1485 |
512 |
7050 |
$898 |
7150-7300 |
$910-930 |
34.5% |
|
PP Fiber |
- |
- |
- |
- |
- |
- |
- |
|
PPBC |
- |
- |
- |
- |
- |
- |
- |
|
LLDPE |
350 |
30 |
7900 |
$1006 |
8040-8050 |
$1024-1025 |
8.6% |
|
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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Shenhua concluded another auction session with disappointing results even though the producer agreed to reduce auction prices. This is the fifth straight session that yields less than desirable transactions, which clearly highlights the lack of purchasing interest among Chinese bidders. The dwindling futures market is blamed for the sluggish sentiment while market participants lose confidence in the near-term outlook amid global economic difficulties.
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