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13 January 2023 - Shenhua's coal-based PP and PE Auction Results13 January 2023 - Shenhua's coal-based PP and PE Auction Results |
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Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 13 January 2023. The following table showed the details of the auction results for prime grade only:
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Product |
Auction Volume |
Deal Volume |
Auction Prices |
Deal Prices |
Deal % |
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|
CNY/ton |
USD/ton |
CNY/ton |
USD/ton |
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Combined and reported by CommoPlast |
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Homo-PP |
1770 |
1770 |
7500 |
$986 |
7570-7860 |
$995-1034 |
100.0% |
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|
PP Fiber |
- |
- |
- |
- |
- |
- |
- |
|
|
PPBC |
100 |
99 |
7500 |
$986 |
7510 |
$988 |
99.0% |
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|
LLDPE |
888 |
821 |
7850 |
$1032 |
7910-8380 |
$1040-1102 |
92.5% |
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LDPE |
- |
- |
- |
- |
- |
- |
- |
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|
HDPE |
- |
- |
- |
- |
- |
- |
- |
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*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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For the first time in four weeks, Shenhua managed to sell out all daily homo-PP allocations in a single auction session. Market confidence has improved sharply following the preliminary signs of a possibly soft-landing in the global economic hardship now that inflations in Western countries seem under control.
Chinese bidders actively replenish cargoes even though the auction deal prices are higher than the previous day. Concerns over the supply tightness amid the maintenance shutdown season stimulated buying interest on the final trading day of the 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
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Reported by:
Kat Yun Yun and Johnathan Yong
Country
China
