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25 July 2023 - Shenhua's coal-based PP and PE Auction ResultsWith the government remaining vocal about supporting the economy following the Economy Work Conference on Monday despite having not announced any specific stimulus packages, buyers are hopeful that easing regulations in the property market would stimulate growth |
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Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 25 July 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 |
1550 |
1530 |
6960 |
$861 |
6960-7350 |
$861-910 |
98.7% |
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PP Fiber |
- |
- |
- |
- |
- |
- |
- |
|
PPBC |
- |
- |
- |
- |
- |
- |
- |
|
LLDPE |
683 |
604 |
7830 |
$969 |
7840-8090 |
$970-1001 |
88.3% |
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LDPE heavy duty |
- |
- |
- |
- |
- |
- |
- |
|
HDPE |
385 |
65 |
7720 |
$956 |
7720-7900 |
$956-978 |
16.9% |
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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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Following a brief dive in trading sentiment earlier this week, Chinese bidders are now more confident to return to the market. With the government remaining vocal about supporting the economy following the Economy Work Conference on Monday despite having not announced any specific stimulus packages, buyers are hopeful that easing regulations in the property market would stimulate growth in the second half of the year.
In spite of the rather upbeat sentiment, the coal-based producer lowered the auction prices for both homo-PP and LLDPE by CNY20/ton which aided sales but hinted at the persistently delicate market acceptance levels as overall sales in the domestic market remain discouraging.
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
