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

insight 27 May 2021

27 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 27 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	1504	573	8350	$1156	8350-8530	$1156-1181	38.1%
PP Fiber	-	-	-	-	-	-	-
PPBC	510	150	8400	$1163	8400-8410	$1163-1165	100.0%
LLDPE	950	465	7650	$1059	7650-7820	$1059-1083	48.9%
LDPE	264	75	9600	$1330	9600-9650	$1330-1336	28.4%
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.

Buying interest for homo-PP remains dwindled toward the end of the week as deal prices inched slightly higher than the previous session. Chinese buyers have yet to regain the confidence in making purchases.

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