CommoPlast | Article - [FREE] 4 November 2021 - Shenhua's coal-based PP and PE Auction Results

Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 04 November 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	1138	151	8430	$1167	8450-8560		$1170-1185	13.3%
PP Fiber	-	-	-	-	-		-	-
PPBC	-	-	-	-	-		-	-
LLDPE	100	100	8610	$1192	8800-8810		$1219-1220	100.0%
LDPE	50	35	11900	$1648	11900		$1648	70.0%
HDPE	225	0	8400	$1163	-		-	0.0%
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.

In spite of the little changes in deal prices, Chinese bidders show little interest in procuring additional homo-PP cargoes toward the end of the week following an announcement from the government pertaining to the improving coal supply in the country. It is expected that the related petrochemical market would march lower as a result.

Background:

Shenhua Baotou Coal Chemical Co is currently the largest coal-based polyolefins producer in China, operating 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