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12 October 2023 – Shenhua's coal-based PP and PE Auction ResultsLack confidence on trader side and uncertainty in the market trend with continuous price drop on behind of weak crude prices. |
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Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 12 October 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 |
1850 |
1150 |
7300 |
$885 |
7300-7550 |
$885-915 |
62.2% |
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PP Fiber |
- |
- |
- |
- |
- |
- |
- |
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PPBC |
350 |
105 |
7650 |
$927 |
7650-7750 |
$927-940 |
30.0% |
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LLDPE |
950 |
400 |
7800 |
$946 |
7980-8060 |
$967-977 |
42.1% |
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LDPE heavy duty |
- |
- |
- |
- |
- |
- |
- |
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HDPE |
500 |
0 |
7680 |
$931 |
- |
- |
0.0% |
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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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The Dalian Commodity Exchange prices of PP and LLDPE hit new lows in the morning session due to weak crude prices thus impacting auction sales. Homo-PP auction price dropped by CNY100/ton and LLDPE price dropped by CNY50/ton compared to yesterday while PE deals, especially HDPE, saw no transactions today. Traders still lack confidence and remain uncertain with the market trend.
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/yearof HDPE/LLDPE and 570,000 tons/year of LDPE.Shenhua Baotou Coal Chemical Co is active in spot trading, while also conducting thedaily 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
