31 August 2023 - Shenhua's coal-based PP and PE Auction Results
Coupled with the strong sales results in the previous session, the coal-based producer confidently lifted deal prices by CNY40/ton for homo-PP and by a whooping CNY200/ton for LLDPE.
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 31 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 |
950 |
850 |
7520 |
$913 |
7530-7740 |
$914-940 |
89.5% |
|
PP Fiber |
- |
- |
- |
- |
- |
- |
- |
|
PPBC |
- |
- |
- |
- |
- |
- |
- |
|
LLDPE |
500 |
230 |
8080 |
$981 |
8250-8290 |
$1001-1006 |
46.0% |
|
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. |
|||||||
It is the final trading day of the month, which usually means Shenhua would allocate a smaller than usual quantity for the auction session. Coupled with the strong sales results in the previous session, the coal-based producer confidently lifted deal prices by CNY40/ton for homo-PP and by a whooping CNY200/ton for LLDPE. The pricing decision inevitably led to a considerable drop in the number of deals, especially when the futures market failed to sustain the latest rebound.
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