CommoPlast | Article - 22 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 22 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	1384	1299	7630	$925	7630-7960	$925-965	93.9%
PP Fiber	-	-	-	-	-	-	-
PPBC	386.5	350	7750	$940	7750-8090	$940-981	90.6%
LLDPE	666	513	8130	$986	8180-8350	$992-1012	87.5%
LDPE heavy duty	-	-	-	-	-	-	-
HDPE	650	40	7950	$964	8200	$994	6.2%
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.

As the futures contracts on the Dalian Commodity Exchange continued to weaken, Shenhua decided to reduce auction prices by CNY80/ton for homo-PP and CNY70/ton for LLDPE in order to attract buying interest. Chinese bidders find the adjustments appealing, resulting in a strong number of transactions on the final trading day of the week.

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