27 November 2023 - Shenhua's coal-based PP and PE Auction Results
The auction activities were predominantly driven by need-based purchases, with traders observing that auction volumes for both PP and PE surpassed those of the previous session.
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 27 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 |
1600 |
1307 |
7250 |
$897 |
7250-7530 |
$897-932 |
81.7% |
|
PP Fiber |
- |
- |
- |
- |
- |
- |
- |
|
PPBC |
489 |
89 |
7300 |
$904 |
7540-7550 |
$933-934 |
18.2% |
|
LLDPE |
730 |
596 |
7780 |
$963 |
7900-8050 |
$978-996 |
81.6% |
|
LDPE heavy duty |
- |
- |
- |
- |
- |
- |
- |
|
HDPE |
100 |
0 |
7900 |
$978 |
- |
- |
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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Deals concluded for the PP and PE auction demonstrated a weaker performance compared to the prior Friday. Traders took note of a CNY30/ton reduction in the auction price for homo-PP, while LLDPE saw a CNY20/ton increase, revealing mixed trends in the market.
The auction activities were predominantly driven by need-based purchases, with traders observing that auction volumes for both PP and PE surpassed those of the previous session. This observation suggests that as the month-end approaches, producers may still have cargoes to deplete. Some traders foresee the potential for minor discounts in the near term, contributing to an overall cautious approach among buyers who remain circumspect about their purchases in the current market conditions.
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