20 May 2021: Auction sales result for Shenhua's coal-based PP and PE

insight 20 May 2021

20 May 2021: Auction sales result for Shenhua's coal-based PP and PE

Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 20 May 2021. The following table showed the details of the auction results for prime grade only:

Product	Auction Volume	Deal Volume	Auction Prices		Deal Prices			Deal %
Product	Auction Volume	Deal Volume	CNY/ton	USD/ton	CNY/ton		USD/ton	Deal %
*Combined and reported by CommoPlast*
Homo-PP	1544	107	8400	$1154		8400-8600	$1154-1182	6.9%
PP Fiber	-	-	-	-		-	-	-
PPBC	160	0	9500	$1305		-	-	0.0%
LLDPE	1079	98	7750	$1065		7750-7900	$1065-1085	9.1%
LDPE	132	67	9900	$1360		9900	$1360	50.8%
HDPE	-	-	-	-		-	-	-
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.

Transactions on the Shenhua auction platform remain sluggish for the second trading day in a row, following the steep fall in the energy complex. Sources are monitoring the impact of the electricity supply on the demand before making decisions.

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