25 August 2023 - Shenhua's coal-based PP and PE Auction Results
Compared to the domestic spot market, the coal-based producer is more sensitive to the market movement. At the first sight of a slowdown in purchasing interest, Shenhua immediately stepped back on auction prices
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 25 August 2023. The following table shows 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 |
1440 |
1124 |
7380 |
$898 |
7500-7690 |
$913-936 |
78.1% |
|
PP Fiber |
- |
- |
- |
- |
- |
- |
- |
|
PPBC |
- |
- |
- |
- |
- |
- |
- |
|
LLDPE |
983 |
768 |
8120 |
$988 |
8250-8360 |
$1004-1018 |
78.1% |
|
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 be incurred in the selling process, i.e. import duty, customs clearances. |
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Compared to the domestic spot market, the coal-based producer is more sensitive to the market movement. At the first sight of a slowdown in purchasing interest, Shenhua immediately stepped back on auction prices by CNY20/ton for homo-PP and CNY30/ton for LLDPE from the previous session, which obviously facilitated transactions on the auction platform despite the weakening futures market.
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