CommoPlast Article

Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 24 July 2023. The following table showed the details of the auction results for prime grade only:

Product	Auction Volume	Deal Volume	Auction Prices		Deal Prices		Deal %
Product	Auction Volume	Deal Volume	CNY/ton	USD/ton	CNY/ton	USD/ton	Deal %
*Combined and reported by CommoPlast*
Homo-PP	1812	1440	6980	$859	7110-7330	$875-902	79.5%
PP Fiber	-	-	-	-	-	-	-
PPBC	-	-	-	-	-	-	-
LLDPE	1000	670	7850	$966	7970-8020	$981-987	67.0%
LDPE heavy duty	-	-	-	-	-	-	-
HDPE	300	43	7900	$972	7900	$972	14.3%
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.

Trading activity on the Shenhua auction platform descended at the start of the week despite auction prices for homo-PP being CNY20/ton lower while LLDPE was significantly reduced by CNY100/ton from the final trading day of last week. Market players are generally on the fence currently withholding from purchases with the economic work conference looming larger to ascertain better the current market direction.

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

24 July 2023 - Shenhua's coal-based PP and PE Auction Results