CommoPlast | Article - [FREE] 8 August 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 09 August 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	1164	1164	7800	$1021	7840-8170		$1026-1070	100.0%
PP Fiber	50	50	7950	$1041	8020		$1050	100.0%
PPBC	50	32	8000	$1047	8000		$1047	64.0%
LLDPE	900	299	7700	$1008	7700-7940		$1008-1039	33.2%
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 actively make purchases on the Shenhua auction platform on the first trading day of the week following the rebound in the futures market. Obviously, Chinese buyers remain uninterested in LLDPE cargoes, clearly reflected in the dwindling number of deals for this grade.

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-chnenergy.com