16 November 2023 - Shenhua's coal-based PP and PE Auction Results
Key PP and LLDPE contracts on the Dalian Commodity Exchange witnessed a steadfast and firm range throughout the first half of the trading day, contributing to an overall positive outcome
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 16 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 |
1180 |
1129 |
7380 |
$900 |
7380-7710 |
$900-940 |
95.7% |
|
PP Fiber |
- |
- |
- |
- |
- |
- |
- |
|
PPBC |
600 |
500 |
7380 |
$900 |
7500-7640 |
$914-931 |
83.3% |
|
LLDPE |
730 |
730 |
8050 |
$981 |
8060-8200 |
$982-1000 |
100.0% |
|
LDPE heavy duty |
- |
- |
- |
- |
- |
- |
- |
|
HDPE |
100 |
33 |
8050 |
$981 |
8050 |
$981 |
33.0% |
|
*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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Key PP and LLDPE contracts on the Dalian Commodity Exchange witnessed a steadfast and firm range throughout the first half of the trading day, contributing to an overall positive outcome in Shenhua’s auction sales results. Although the number of deals for homo-PP dipped slightly from the previous day, the CNY20/ton increase in auction price justified it.
Traders attribute this positive trend to the favourable global sentiment, particularly amidst encouraging talks between the USA and China, signalling optimism for the overall macroeconomic outlook.
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