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27 June 2023 - Shenhua's coal-based PP and PE Auction ResultsSince the futures market did not pose any significant rebound, producers were urged to introduce steeper discounts as similar patterns were observed in the domestic spot market. |
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Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 27 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 |
1996 |
1832 |
6800 |
$835 |
6800-7110 |
$835-873 |
91.8% |
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PP Fiber |
- |
- |
- |
- |
- |
- |
- |
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PPBC |
26 |
0 |
7350 |
$902 |
- |
- |
0.0% |
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LLDPE |
950 |
750 |
7740 |
$950 |
7740-7860 |
$950-965 |
78.9% |
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LDPE heavy duty |
50 |
0 |
8500 |
$1043 |
- |
- |
0.0% |
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HDPE |
500 |
76 |
7750 |
$951 |
7750-7950 |
$951-976 |
15.2% |
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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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After the deflated trading activity in the previous session, Shenhua revised auction prices downward considerably with coal-based homo-PP at CNY100/ton lower while LLDPE at CNY50/ton lower than the previous session which predictably induced some well-needed deals.
Since the futures market did not pose any significant rebound, producers were urged to introduce steeper discounts as similar patterns were observed in the domestic spot market. Market participants are now paying close attention to whether more stimulus policies will be implemented by the government as the Chinese market remains underwhelming since its return from the holiday.
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
