21 December 2023 - Shenhua's coal-based PP and PE Auction Results
The uptick in auction prices has led to some resistance from buyers; however, traders view this as a normal occurrence. Market participants remain cautious, but the average deal prices are gradually increasing week by week.
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 21 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 |
2332 |
2182 |
7220 |
$894 |
7350-7550 |
$910-934 |
93.6% |
|
PP Fiber |
- |
- |
- |
- |
- |
- |
- |
|
PPBC |
266 |
166 |
7220 |
$894 |
7220-7460 |
$894-923 |
62.4% |
|
LLDPE |
850 |
847 |
7900 |
$978 |
7900-8120 |
$978-1005 |
99.6% |
|
LDPE heavy duty |
- |
- |
- |
- |
- |
- |
- |
|
HDPE |
- |
- |
- |
- |
- |
- |
- |
|
*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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In the current market scenario, both Homo-PP and LLDPE are still achieving deals above 90%, although a slightly weaker trend is observed compared to the previous day. Traders attribute this minor softening to the firmer auction prices than the previous day, with homo-PP seeing a $20/ton increase and LLDPE at CNY50/ton higher.
The uptick in auction prices has led to some resistance from buyers; however, traders view this as a normal occurrence. Market participants remain cautious, but the average deal prices are gradually increasing week by week.
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