18 May 2023 - Shenhua's coal-based PP and PE Auction Results
After witnessing resistance from customers in the previous session, Shenhua lowers their deal prices for homo-PP by as much as CNY140/ton today, leading to a visible uptick in transactions.
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 18 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 |
1882 |
1367 |
6950 |
$879 |
6960-7240 |
$880-915 |
72.6% |
|
PP Fiber |
- |
- |
- |
- |
- |
- |
- |
|
PPBC |
- |
- |
- |
- |
- |
- |
- |
|
LLDPE |
400 |
250 |
7700 |
$973 |
7870-7990 |
$995-1010 |
62.5% |
|
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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After witnessing resistance from customers in the previous session, Shenhua lowers their deal prices for homo-PP by as much as CNY140/ton today, leading to a visible uptick in transactions. The move also underlines the lack of confidence among bidders in the near-term outlook to accept even the slightest price increases.
Meanwhile, the producer maintains LLDPE prices stable on the back of the substantially reduced auction volume.
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