CommoPlast

13 December 2022 - Shenhua's coal-based PP and PE Auction Results

insight 13 Dec 2022

13 December 2022 - Shenhua's coal-based PP and PE Auction Results


Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 13 December 2022. 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

1728

1177

7690

$975

7690-7880

$975-999

68.1%

PP Fiber

-

-

-

-

-

-

-

PPBC

-

-

-

-

-

-

-

LLDPE

600

354

8050

$1021

8150-8320

$1033-1055

59.0%

LDPE

-

-

-

-

-

-

-

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.
                 

Following the strong sales results in the previous day, Shenhua decided to lift deal prices for homo-PP by CNY100/ton ($14/ton), leading to a substantial drop in the number of transactions. Chinese buyers have been highly cautious in accepting higher prices amid the uncertain demand outlook in the coming months.

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