Feb 21, 2024 11:10 p.m.

01 December 2023 - Shenhua's coal-based PP and PE Auction Results

The Shenhua auction platform kickstarted the week on a strong note as buyers appeared more enthusiastic to procure more cargo leading to a healthy number of deals concluded.

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Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 01 December 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

1550

7200

$895

7220-7510

$897-933

96.9%

PP Fiber

-

-

-

-

-

-

-

PPBC

200

200

7350

$914

7370-7460

$916-927

100.0%

LLDPE

898

830

7700

$957

7720-8000

$960-994

92.4%

LDPE heavy duty

-

-

-

-

-

-

-

HDPE

226

226

7850

$976

7890-7900

$981-982

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.

 

The Shenhua auction platform kickstarted the week on a strong note as buyers appeared more enthusiastic to procure more cargo leading to a healthy number of deals concluded. The producer reportedly lowered the auction price by CNY20/ton for homo-PP and CNY30/ton for LLDPE, partially contributing to the smooth selling process.  

Market participants shrugged off the bearish manufacturing data in November to focus on the possibility that global economy might recover at a quicker pace as major central banks are poised to cut interest rates in 2024.

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

 

Country

China