CommoPlast | Article - 22 December 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 21 December 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	1716	1548	7550	$957	7550-7870	$957-998	90.2%
PP Fiber	-	-	-	-	-	-	-
PPBC	-	-	-	-	-	-	-
LLDPE	369	318	8060	$1022	8060-8570	$1022-1087	86.2%
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.

In spite of the rising number of infection cases that impact the trading sentiment in the spot market, Chinese bidders remain active on the Shenhua auction platform. Sources said that coal-based cargoes are still more competitive, which compensates for the tight availability in the spot market.

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