Aug 08, 2020 5:08 a.m.

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

Sentiment drops visibly on the final trading day of the week regardless of the positive economic data announced by the Chinese government.

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Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 31 July 2020. 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

1392

555

7250

$917

7550-7730

$954-977

39.9%

PP Fiber

456

100

7700

$973

7700-7810

$973-987

21.9%

PPBC

0

0

-

-

-

-

-

LLDPE

533

66

7150

$904

7150-7760

$904-981

12.4%

LDPE

50

50

8600

$1087

8670-8680

$1096-1097

100%

HDPE

200

0

7000

$885

-

-

0%

*Auction and Deal volumes are in tonnage 

*All USD equivalent prices only exclude the 13% value-added tax (VAT).

 

Sentiment drops visibly on the final trading day of the week regardless of the positive economic data announced by the Chinese government. Customers are waiting for further price reductions.

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

Country

China