12 January 2023 - Shenhua's coal-based PP and PE Auction Results
12 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 12 January 2023. The auction results for prime grade only are shown in the table below:
|
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 |
2080 |
1941 |
7350 |
$962 |
7350-7860 |
$962-1029 |
93.3% |
|
|
PP Fiber |
- |
- |
- |
- |
- |
- |
- |
|
|
PPBC |
100 |
0 |
7500 |
$982 |
- |
- |
0.0% |
|
|
LLDPE |
1200 |
1080 |
7820 |
$1024 |
7840-8320 |
$1026-1089 |
90.0% |
|
|
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. |
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Results from Shenhua’s coal-based PP and PE Auction have shown that auction prices for homo-PP and PPBC have increased by CNY50/ton while LL prices have remained constant from yesterday.
Though overall deals for homo-PP and LLDPE remain above 90%, deals have slightly weakened compared to yesterday, as a number of traders leave for the Lunar New Year holidays. Despite the slight minor reductions, last-minute orders are expected to be placed before the Lunar New Year, as traders speculate a firmer outlook post-holiday. Hence, it is likely that the local inventory, including Shenhua materials to experience further processing of orders.
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
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Reported by: Kat Yun Yun and Kanessha Ramakrishnan