20 September 2023 - Shenhua's coal-based PP and PE Auction Results
Even though Shenhua allocated smaller PP and PE allocations to the auction session, the deals concluded were still disappointing.
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 20 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 % |
||
|
CNY/ton |
USD/ton |
CNY/ton |
USD/ton |
||||
|
Combined and reported by CommoPlast |
|||||||
|
Homo-PP |
1326 |
446 |
7780 |
$943 |
7780-8050 |
$943-976 |
33.6% |
|
PP Fiber |
- |
- |
- |
- |
- |
- |
- |
|
PPBC |
386.5 |
100 |
7860 |
$953 |
8140-8150 |
$987-988 |
25.9% |
|
LLDPE |
561 |
377 |
8280 |
$1004 |
8350-8470 |
$1012-1027 |
73.1% |
|
LDPE heavy duty |
- |
- |
- |
- |
- |
- |
- |
|
HDPE |
150 |
66 |
8150 |
$988 |
8150 |
$988 |
44.0% |
|
*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. |
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Chinese bidders withdrew to the sideline following the retreat in crude oil prices that weighed on the Dalian Commodity Exchange. Even though Shenhua allocated smaller PP and PE allocations to the auction session, the deals concluded were still disappointing.
As reported earlier, the strong sales results on the Shenhua auction platform were primarily driven by active arbitrage traders. However, this group of buyers are also highly sensitive to the movement of the futures market, causing a drastic swing in the auction results.
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