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19 December 2023 - Shenhua's coal-based PP and PE Auction ResultsNevertheless, auction prices for both PP and LLDPE showcased discounts compared to the previous day, with PP Homo auction prices dropping by CNY30/ton |
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Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 19 December 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 |
1912 |
1828 |
7200 |
$892 |
7200-7480 |
$892-927 |
95.6% |
|
PP Fiber |
- |
- |
- |
- |
- |
- |
- |
|
PPBC |
266 |
266 |
7180 |
$890 |
7180-7470 |
$890-926 |
100.0% |
|
LLDPE |
650 |
650 |
7800 |
$967 |
7890-8120 |
$978-1006 |
100.0% |
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LDPE heavy duty |
- |
- |
- |
- |
- |
- |
- |
|
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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The Dalian Commodity Exchange (DCE) witnessed a slightly firm range throughout the morning session with PP and LLDPE futures experiencing a modest hike of CNY20-30/ton. Nevertheless, auction prices for both PP and LLDPE showcased discounts compared to the previous day, with PP Homo auction prices dropping by CNY30/ton and LLDPE by CNY80/ton. Improved deals were observed today, particularly for LLDPE and PPBC, with PP Homo transactions exceeding 95%.
Sellers anticipate ongoing discounts in auction prices over the next few days to stimulate transactions. The cautious approach of customers, driven by year-end considerations and risk mitigation, is expected to influence market trends, potentially leading to weaker price acceptance amid a lack of robust end-product orders.
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
