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China: Auction sales result for Shenhua's coal-based PP and PEChina: Auction sales result for Shenhua's coal-based PP and PE |
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Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 07 April 2020. 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 |
2892 |
2597 |
6500 |
$812 |
6650-8790 |
$831-1099 |
89.8% |
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PPBC |
769 |
636 |
6370 |
$796 |
6400-7510 |
$800-939 |
82.7% |
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LLDPE |
800 |
800 |
6100 |
$763 |
6150-6280 |
$769-785 |
100% |
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LDPE |
150 |
150 |
6850 |
$856 |
7070-7370 |
$884-921 |
100% |
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HDPE |
438 |
338 |
6050 |
$756 |
6280-6490 |
$785-811 |
77.2% |
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*Auction and Deal volumes are in tonnage *All prices in CNY are included of 13% VAT rate and based on EXW China term *All USD equivalent prices are excluded of 13% VAT rate |
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Sentiment in the domestic market in China improved drastically this morning as players rush to make replenishment following the surge in the futures market. There also are market talks that coal-based PP and PE producers might have to cut operation rates significantly or even shut down due to negative margins and lack of competitiveness against naphtha-based plants at the moment. Supply potentially curtails.
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-shenhua.com
Country
China
