CommoPlast | Article - 12 September 2023 - Shenhua's coal-based PP and PE Auction Results

Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 12 September 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 %
Product	Auction Volume	Deal Volume	CNY/ton	USD/ton	CNY/ton	USD/ton	Deal %
*Combined and reported by CommoPlast*
Homo-PP	1452	1432	7650	$929	7650-7970	$929-968	98.6%
PP Fiber	-	-	-	-	-	-	-
PPBC	-	-	-	-	-	-	-
LLDPE	566	500	8200	$995	8310-8350	$1009-1014	88.3%
LDPE heavy duty	-	-	-	-	-	-	-
HDPE	100	99	8200	$995	8200	$995	99.0%
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.

Chinese bidders continue to show strong buying appetite on the Shenhua auction platform driven by the pre-holiday replenishment activities and strong upstream cost outlook that is expected to keep the market on a firm note moving forward.

Shenhua up-adjusted auction prices by CNY 50/ton for homo-PP and CNY 30/ton for LLDPE to reflect the reduced auction volume and resilient 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