28 July 2023 - Shenhua's coal-based PP and PE Auction Results
Chinese bidders remain enthusiastic in making replenishment on the final trading day of the week after key PP contracts on Dalian Commodity Exchange hit the highest levels since April 2023
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 28 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 |
1750 |
1700 |
7050 |
$871 |
7050-7420 |
$871-917 |
97.1% |
|
PP Fiber |
- |
- |
- |
- |
- |
- |
- |
|
PPBC |
- |
- |
- |
- |
- |
- |
- |
|
LLDPE |
880 |
879 |
7920 |
$979 |
7920-8160 |
$979-1009 |
99.9% |
|
LDPE heavy duty |
- |
- |
- |
- |
- |
- |
- |
|
HDPE |
332 |
233 |
7720 |
$954 |
7720-7950 |
$954-983 |
70.2% |
|
*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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Chinese bidders remain enthusiastic about making replenishment on the final trading day of the week after key PP contracts on Dalian Commodity Exchange hit the highest levels since April 2023, fuelling bullish expectations on the near-term outlook. Shenhua maintained more than 90% done deal for both homo-PP and LLDPE even after an additional price increase of CNY20/ton.
It is worth noting that despite the persistently resilient futures contracts, producers are quite wary against steep price hikes aware that customers may be price sensitive and need time to adjust to the upward momentum.
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