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27 April 2023 - Shenhua's coal-based PP and PE Auction ResultsThe poor results for PP contracts are further proof of the market hesitance upon any price markups with homo-PP gaining CNY30/ton from the last session. |
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Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 27 April 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 |
2267 |
745 |
7330 |
$937 |
7350-7550 |
$940-967 |
32.9% |
|
PP Fiber |
- |
- |
- |
- |
- |
- |
- |
|
PPBC |
- |
- |
- |
- |
- |
- |
- |
|
LLDPE |
750 |
725 |
8150 |
$1042 |
8190-8290 |
$1047-1060 |
96.7% |
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LDPE |
- |
- |
- |
- |
- |
- |
- |
|
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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Trades on the Shenhua auction platform produced a seemingly gaping result as LLDPE continued to perform well achieving more than 95% of its deals while homo-PP fell well below the 50% mark. The poor results for PP contracts are further proof of the market hesitance upon any price markups with homo-PP gaining CNY30/ton from the last session. On the part of LLDPE, the deals secured were partly down to the CNY50/ton discount, but traders added that the deals were mainly need basis replenishments. Market sources expect the general sentiment to remain frail as the holiday period etches closer.
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
Country
China
