China: Auction sales result for Shenhua's coal-based PP and PE

Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 03 July 2020. The following table showed the details of the auction results for prime grade only: 

Chinese bidders appear more active on the final trading day of the week, resulted in better transactions for both PP and PE. Sources said that this could be a result from the previous day’s news on the suspension of coking coal sales from China National Energy that might affect coal-based PP and PE producers.

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-shenhua.com

**Note: 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.