16 May 2023 - Shenhua's coal-based PP and PE Auction Results
Thanks to the rebound on the Dalian Commodity Exchange, Chinese bidders rush back to the Shenhua auction platform to secure coal-based homo-PP and LLDPE cargoes, resulting in a sharp uptick in the number of deals concluded.
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 16 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 |
2242 |
1953 |
6800 |
$865 |
6800-7260 |
$865-923 |
87.1% |
|
PP Fiber |
- |
- |
- |
- |
- |
- |
- |
|
PPBC |
- |
- |
- |
- |
- |
- |
- |
|
LLDPE |
800 |
700 |
7700 |
$979 |
7720-8000 |
$982-1017 |
87.5% |
|
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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Thanks to the rebound on the Dalian Commodity Exchange, Chinese bidders rush back to the Shenhua auction platform to secure coal-based homo-PP and LLDPE cargoes, resulting in a sharp uptick in the number of deals concluded.
Supporting deals was the fact that auction prices for both grades were lower from the last session with homo-PP dropping CNY220/ton while LLDPE descended CNY80/ton. Attention now shifts to the sustainability of the rebounds with market players remaining vigilant because the market has retreated before following a rebound note.
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