03 August 2023 - Shenhua's coal-based PP and PE Auction Results
On the other hand, limited supply coupled with smaller price hikes kept bidders interested in the coal-based LLDPE cargoes.
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 03 August 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 |
1450 |
820 |
7200 |
$886 |
7300-7450 |
$898-917 |
56.6% |
|
PP Fiber |
- |
- |
- |
- |
- |
- |
- |
|
PPBC |
- |
- |
- |
- |
- |
- |
- |
|
LLDPE |
758 |
658 |
8000 |
$985 |
8100-8130 |
$997-1001 |
86.8% |
|
LDPE heavy duty |
- |
- |
- |
- |
- |
- |
- |
|
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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Following several days of strong auction results, Shenhua decided to lift coal-based PP and PE prices by CNY100/ton and CNY50/ton respectively. The timing could not be any worse for the producer as key contracts on Dalian Commodity Exchange fell sharply, impacting buying interest among arbitrage traders.
Auction results for homo-PP locked at just 56.6%.
On the other hand, limited supply coupled with smaller price hikes kept bidders interested in the coal-based LLDPE cargoes.
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