17 November 2023 - Shenhua's coal-based PP and PE Auction Results
The market commentary suggests that local sellers, including Shenhua (a coal-based producer), are experiencing minimal inventory pressure, contributing to the resilience in prices.
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 17 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 |
930 |
491 |
7360 |
$898 |
7530-7700 |
$919-940 |
52.8% |
|
PP Fiber |
- |
- |
- |
- |
- |
- |
- |
|
PPBC |
250 |
38 |
7350 |
$897 |
7350-7500 |
$897-915 |
15.2% |
|
LLDPE |
700 |
555 |
8050 |
$983 |
8050-8100 |
$983-989 |
79.3% |
|
LDPE heavy duty |
- |
- |
- |
- |
- |
- |
- |
|
HDPE |
100 |
0 |
8050 |
$983 |
- |
- |
0.0% |
|
*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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The auction witnessed a CNY20/ton decrease in the price of homo-PP, while LLDPE prices remained stable from yesterday. Despite an overall decrease in deals, traders point out that the slight drop in the Dalian Commodity Exchange (DCE) and the relatively stable local price support, despite the influence of crude prices, have contributed to this situation.
The market commentary suggests that local sellers, including Shenhua (a coal-based producer), are experiencing minimal inventory pressure, contributing to the resilience in prices. The lower sales pressure is reflected in the limited downward adjustment of prices, despite weaker overall deals.
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