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14 March 2023 - Shenhua's coal-based PP and PE Auction ResultsTraders are dropping risky assets to monitor further development before jumping back to the market. |
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Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 14 March 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 |
2140 |
503 |
7520 |
$969 |
7620-7730 |
$982-996 |
23.5% |
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PP Fiber |
- |
- |
- |
- |
- |
- |
- |
|
PPBC |
132 |
42 |
7800 |
$1005 |
7810-7950 |
$1006-1024 |
31.8% |
|
LLDPE |
900 |
163 |
8180 |
$1054 |
8190-8230 |
$1055-1060 |
18.1% |
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LDPE |
32 |
0 |
8600 |
$1108 |
- |
- |
0.0% |
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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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Trading activities on the Shenhua auction platform continue to decline on the second trading day of the week following the growing banking threats in the US. Traders are dropping risky assets to monitor further development before jumping back into the market.
Chinese market participants heavily discussed the potential financial crisis as at least two other banks in the US are now facing bankruptcy. Nevertheless, Shenhua refuses any substantial discounts claiming a lack of inventory pressure.
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
