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14 June 2023 - Shenhua's coal-based PP and PE Auction ResultsTrading activities on the Shenhua auction platform performed considerably better than the previous session as market confidence improved sharply after the People’s Bank of China (PBOC) cut short-term borrowing costs to support recovery. |
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Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 14 June 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 |
1678 |
1678 |
6750 |
$833 |
6790-7100 |
$838-876 |
100.0% |
|
PP Fiber |
- |
- |
- |
- |
- |
- |
- |
|
PPBC |
26 |
0 |
7400 |
$913 |
- |
- |
0.0% |
|
LLDPE |
716 |
616 |
7620 |
$940 |
7620-7860 |
$950-970 |
86.0% |
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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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Trading activities on the Shenhua auction platform performed considerably better than the previous session as market confidence improved sharply after the People’s Bank of China (PBOC) cut short-term borrowing costs to support recovery. Market players are looking forward to more stimulus from the government, which could boost demand.
Thanks to the additional CNY30/ton reductions in deal prices that created an attractive gap with the Dalian Commodity Exchange, arbitrage traders are active in scouring coal-based cargoes on the Shenhua auction platform.
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
