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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 14 April 2021. 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 |
1938 |
234 |
8400 |
$1137 |
8520-8630 |
$1153-1168 |
12.1% |
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PP Fiber |
230 |
0 |
8430 |
$1141 |
- |
- |
0.0% |
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PPBC |
- |
- |
- |
- |
- |
- |
- |
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LLDPE |
700 |
500 |
8130 |
$1100 |
8140-8200 |
$1101-1110 |
71.4% |
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LDPE |
- |
- |
- |
- |
- |
- |
- |
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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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In spite of lower deal prices, Chinese bidders portray a seriously lacking interest in proceeding with purchases for homo-PP cargoes. Meanwhile, players are expecting auction coal based LLDPE cargoes might breach below the CNY8000/ton threshold in the near term.
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
