14 July 2023 - Shenhua's coal-based PP and PE Auction Results
Both homo-PP and LLDPE achieved full deals, however, it is interesting that the producer raised offers guardedly by just CNY30/ton on homo-PP while LLDPE and HDPE remained unchanged.
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 14 July 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 |
1600 |
1600 |
6980 |
$866 |
7030-7430 |
$873-922 |
100.0% |
|
PP Fiber |
- |
- |
- |
- |
- |
- |
- |
|
PPBC |
- |
- |
- |
- |
- |
- |
- |
|
LLDPE |
650 |
650 |
7860 |
$976 |
7920-8120 |
$983-1008 |
100.0% |
|
LDPE heavy duty |
- |
- |
- |
- |
- |
- |
- |
|
HDPE |
366 |
366 |
7800 |
$968 |
7800-8020 |
$968-995 |
100.0% |
|
*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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With the sturdy support from firming futures contracts on the Dalian Commodity, trading activities on the Shenhua auction platform remained healthy. Both homo-PP and LLDPE achieved full deals, however, it is interesting that the producer raised offers guardedly by just CNY30/ton on homo-PP while LLDPE and HDPE remained unchanged.
At the moment, buyers are willing to accept menial price increases considering the extended support from the Dalian Commodity Exchange and rallied local sentiment. Nevertheless, many are on the lookout for more movements in the week ahead to ascertain the market situation and if prices will trickle back down.
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