27 December 2023 - Shenhua's coal-based PP and PE Auction Results
Market players noted that customers anticipate better support for PE prices, attributing this expectation to PE's higher dependency on import cargoes compared to PP.
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 27 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 |
2240 |
1618 |
7230 |
$895 |
7230-7510 |
$895-930 |
72.2% |
|
PP Fiber |
- |
- |
- |
- |
- |
- |
- |
|
PPBC |
549.5 |
549.5 |
7220 |
$894 |
7220-7540 |
$894-933 |
100.0% |
|
LLDPE |
1093 |
1093 |
7920 |
$980 |
7940-8180 |
$983-1012 |
100.0% |
|
LDPE heavy duty |
66 |
0 |
8650 |
$1071 |
- |
- |
0.0% |
|
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 today's auction session, PP prices exhibited weaker sentiment compared to PE. Homo-PP saw slight $10/ton discounts, while LLDPE auction prices remained stable from the previous day. The concluded deals for Homo-PP were also weaker than the previous day.
Market players noted that customers anticipate better support for PE prices, attributing this expectation to PE's higher dependency on import cargoes compared to PP. The recent surge in freight costs is seen as a factor that could provide more support for PE prices. As the year-end approaches, it is anticipated that prices will remain within a firm and range-bound trajectory, with market participants awaiting further direction in the coming year.
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