11 January 2023 - Shenhua's coal-based PP and PE Auction Results
11 January 2023 - 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 11 January 2023. The following table showed the details of the auction results for prime grade only:
|
Product |
Auction Volume |
Deal Volume |
Auction Prices |
Deal Prices |
Deal % |
||
|
CNY/ton |
USD/ton |
CNY/ton |
USD/ton |
||||
|
Combined and reported by CommoPlast |
|||||||
|
Homo-PP |
2530 |
2473 |
7300 |
$953 |
7340-7830 |
$958-1022 |
97.7% |
|
PP Fiber |
- |
- |
- |
- |
- |
- |
- |
|
PPBC |
100 |
99 |
7450 |
$972 |
7470 |
$975 |
99.0% |
|
LLDPE |
1350 |
1250 |
7820 |
$1021 |
7820-8300 |
$1021-1083 |
92.6% |
|
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 returned to the Shenhua auction platform to secure competitive coal-based cargoes following the rebound on Dalian Commodity Exchange. Deal prices for both homo-PP and LLDPE dropped another CNY50/ton compared to the previous session, giving arbitrage traders a healthy gap with the futures market to work on.
Purchasing activities from manufacturers, however, have declined as this segment of buyers is winding down operating rates before taking off for the long holiday.
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