CommoPlast | Article - [FREE] 9 December 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 09 December 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	861	776	8000	$1115	8000-8250		$1115-1150	90.1%
PP Fiber	-	-	-	-	-		-	-
PPBC	-	-	-	-	-		-	-
LLDPE	50	30	9050	$1261	9050		$1261	60.0%
LDPE	-	-	-	-	-		-	-
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.

Chinese bidders continue to show healthy purchase appetite on the Shenhua auction platform as the producer maintain prices largely unchanged from the previous session. It is interesting that the available allocations have been limited throughout the week, yet Shenhua declined any production issues.

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