CommoPlast | Article - [FREE] 19 April 2022 - 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 19 April 2022. 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	1450	1450	8400	$1167	8500-8780		$1181-1220	100.0%
PP Fiber	100	100	9050	$1257	9170-9180		$1274-1275	100.0%
PPBC	-	-	-	-	-		-	-
LLDPE	852	756	8750	$1216	8760-9000		$1217-1250	88.7%
LDPE	-	-	-	-	-		-	-
HDPE	60	60	8650	$1202	8670-8680		$1204-1206	100.0%
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.

Chinese buyers remain bullish on the second trading day of the week, willing to off-take coal-based cargoes from the Shenhua auction platform as the Dalian Commodity Exchange extended the firming trend. In spite of higher deal prices, the price gap with the futures market is still profitable for arbitrage traders.

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-chnenergy.com