28 November 2023 - Shenhua's coal-based PP and PE Auction Results
Auction sales for both PP and PE were comparatively weaker than yesterday, with PPH auction prices down by CNY10/ton and LL down by CNY50/ton.
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 28 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 |
1680 |
1208 |
7240 |
$896 |
7250-7520 |
$897-931 |
71.9% |
|
PP Fiber |
- |
- |
- |
- |
- |
- |
- |
|
PPBC |
699.5 |
169.5 |
7280 |
$901 |
7280-7500 |
$901-928 |
25.3% |
|
LLDPE |
680 |
450 |
7730 |
$957 |
7870-8030 |
$974-994 |
66.2% |
|
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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Auction sales for both PP and PE were comparatively weaker than yesterday, with PPH auction prices down by CNY10/ton and LL down by CNY50/ton. Traders noted that in the current market sentiment, only discounted prices seem to attract deals.
Although deal price was concluded for PPH and LLDPE, buyers' acceptance of price levels remains weak. Buyers are sourcing based on immediate needs, contributing to ongoing deals amid discounts or softer prices. However, caution persists as many assess the potential for a price rebound soon.
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