13 November 2023 - Shenhua's coal-based PP and PE Auction Results
Chinese bidders seemed to abandon the Shenhua auction platform on the first trading day of the week after key contracts on the Dalian Commodity Exchange nosedived more than CNY100/ton at the start of the session.
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 13 November 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 |
1500 |
423 |
7360 |
$893 |
7360-7670 |
$893-931 |
28.2% |
|
PP Fiber |
- |
- |
- |
- |
- |
- |
- |
|
PPBC |
600 |
0 |
7360 |
$893 |
- |
- |
0.0% |
|
LLDPE |
850 |
10 |
7900 |
$959 |
8100 |
$983 |
1.2% |
|
LDPE heavy duty |
- |
- |
- |
- |
- |
- |
- |
|
HDPE |
100 |
100 |
8050 |
$977 |
8050 |
$977 |
100.0% |
|
*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 seemed to abandon the Shenhua auction platform on the first trading day of the week after key contracts on the Dalian Commodity Exchange nosedived more than CNY100/ton at the start of the session. Market participants dropped all replenishments temporarily following the liquidity crunch in the country.
Trading sentiment might improve in the coming days as the PBOC is expected to inject CNY950 billion ($130 billion) into the market through the medium-term lending facility.
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